#Cryptomarketrebound

#SolPricePrediction
Solana Price Predictions: SOL sell-offs loom below $200 as DeFi TVL and funding rates decline:

- Solana has reduced its gains to around the $200 level, reflecting the high volatility in the broader cryptocurrency market.
- The participation balance in Solana's DeFi system decreased by 15% from its peak in September at $13.22 billion.
- The Solana open interest weighted funding rate turns negative as traders intensify their short positions.
Solana's stock (SOL) is trading bearishly at around $206 at the time of writing this report on Tuesday, reflecting a healthy correction after a steady rise from the weekend until Monday.

Technically, there is a narrow range between $200 and $205, but the weakness in the derivatives market and a 15% decrease in staking balances in the ecosystem highlight the potential risks that could prolong the downturn.

- Decrease in financing rates in Solana DeFi TVL
The value of decentralized financing (DeFi) from Solana reached an all-time high in total value locked (TVL) on September 14, with the value of smart contracts held at 13.22 billion USD across all chain protocols. However, the extreme volatility in the broader cryptocurrency market, which coincided with a drop in price from its peak of around 250 USD, led to a sharp decline in value to 10.78 billion USD on Friday.

The average total value of decentralized finance assets (DeFi TVL) was $11.23 billion on Tuesday, but it shows signs of further decline if the price of Solana falls below the critical level of $200. Shareholders often pull their funds from staking contracts with the intent to sell, increasing the risk of intensive selling.

Solana DeFi TVL attached

The Solana derivatives market also shows weakness, as evidenced by the open interest weighted funding rate (OI) turning negative. Negative funding rates often indicate a trend towards risk aversion, as traders increasingly avoid long positions and shift towards short positions. The coming days may provide further insights into the direction of the open interest weighted funding rate (OI), and whether it will be followed by a recovery above the $220 level, or whether investors should start to brace for losses below the $200 mark.

Attached is the weighted funding rate for Solana OI.

- Technical forecasts: Solana faces a potentially deeper decline:
The Solana token is trading below the 50-day exponential moving average (EMA) at $208, after failing to break the $215 level on Monday. This reversal is reflected in the Relative Strength Index (RSI), which has not crossed the midpoint but has dropped to 44 on the daily chart.

With the Relative Strength Index (RSI) falling below the midpoint, this indicates an increase in bearish momentum. Investors can also reduce their exposure to risk, as the Moving Average Convergence Divergence (MACD) has maintained a sell signal since September 21. The red histogram bars confirm the bearish outlook, which may weaken gains in favor of a correction below the key price level of $200.

Attached is the daily chart for the SOL/USDT pair.

If the decline continues below $200, traders will shift their focus to the 100-day exponential moving average at $194 and the 200-day exponential moving average at $182, both of which will form temporary support levels. However, traders may hope for an immediate rebound above the 50-day exponential moving average, which could pave the way for a steady upward trend above $220, and then towards $250.