Solana's token SOL struggled to maintain levels above $200 amidst a broader cryptocurrency decline of 3.5% from Dec. 25 to Dec. 27. SOL saw a 5.1% drop, raising concerns among traders due to a significant 30% fall in weekly on-chain volumes. Despite leading with $20.9 billion in weekly volumes, Solana underperformed compared to Ethereum and Sui, which experienced declines of 15% and 8%, respectively. Notably, activity on Solana's DApps decreased, with Orca and Phoenix down 39% and Raydium down 30%. The downturn in memecoins further pressured on-chain activity critical for SOL demand. Furthermore, while total locked value on Solana reached a two-year high of 44 million SOL, some platforms saw decreasing deposits. The futures market indicates a mixed sentiment, with a current 10% premium reflecting resilience despite SOL's recent price decline. However, the negative funding rate observed on Dec. 27 may indicate reduced retail demand, suggesting a moderately bearish outlook for SOL's short-term price, yet limited downside risk below $180 remains due to optimism among large traders.

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