Key Insights:
- Solana’s price has fallen, reversing all gains made after Trump’s crypto reserve statement.
- Market sentiment remains bearish as selling pressure and new wallet activity decrease.
- Key support levels are being tested, with potential further declines if $130 breaks.
Solana price has lost all the gains made after Donald Trump’s crypto reserve announcement, falling to $136. The price decline follows increased selling pressure and a drop in new wallet activity, raising concerns about further losses if key support levels break.
Solana Price Falls Below Key Support
The price has declined to $136.92, down 3.69% in the past 24 hours. The token traded in a range between $132.46 and $145.08, struggling to regain upward momentum. The drop follows a broader market correction, with traders taking profits after recent gains.
Key support levels for Solana are currently between $130 and $135. If the price falls below this range, a further decline toward $120 or lower could occur. Resistance is seen at $145–$150, which needs to be reclaimed for a potential price recovery.
Technical Indicators Show Bearish Momentum
Several technical indicators suggest continued downside pressure. The Relative Strength Index (RSI) is at 37.90, nearing the oversold zone. This could indicate a short-term bounce if buying interest returns. However, the Cumulative Volume Delta (CVD) remains negative at -641.25K, signaling strong selling activity.
Open interest (OI) in Solana derivatives has also dropped sharply. Data shows a -23.09% decrease in open interest, reflecting traders closing leveraged positions. Perpetual contracts saw a -23.29% decline, while futures contracts recorded an 8.89% increase. This suggests that some traders may be positioning for future moves despite the overall bearish trend.
Solana Market Activity Declines
Solana’s market cap has dropped to $69.55 billion, which is down by 13%. The trading activity has been reduced in terms of the trading frequency, which is evident through the reduction of the daily trading volume by 33.02%.
Besides, the on-chain data such as the daily active addresses have reduced from as high as 5 million to about 2.7 million. This is obviously lower user activity as certain markets that have increased the number of new wallets in the previous months may have been moderated by recent high volatility. This is due to the fact that if the quantity of new wallets to be registered reaches below 2M, it signifies a reduction in the rate at which the platform is being adopted.
FTX/Alameda Unstakes Solana Holdings
In addition to the market factors, the FTX/Alameda duo unstaked 3.03 million SOL ($431.3 million) earlier today. A part of these funds, 24,799 SOL ($3.38 million) has been transferred to Binance already. This has created an indication that there might be a significant selling pressure if more tokens are sold in the market.
Traders and analysts are closely monitoring whether FTX/Alameda will continue offloading SOL holdings. If large amounts are sold, it could further impact the price, pushing it toward the next support level.
Analysts Predict Solana Price Recovery in March
According to analysts, the SOL has faced declines recently, but the price is expected to rise in March by 6.28%. This could reach as high as $154.31, with a low of $136.92, and an average of $146.83. This has followed a 35.23% drop in the last month which indicates a possible trend reversal. Traders may make 11.70% on investment, if the bulls take control of the market.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.