Key Insight:
- Solana price plunged 18% in 24 hours, hitting $97 for the first time since February.
- Over $62 million in long positions liquidated as trading volume surged past $5 billion.
- Analysts warn of a possible crash to $80 amid looming $50M token unlock and fear index drop.
Solana price has experienced a significant downturn, with its price dropping below the $100 mark for the first time since February 2024. This decline has raised concerns among investors about the potential for further losses, especially in light of several bearish indicators.
Solana Price Faces Heavy Liquidations
SOL price recorded one of its worst daily losses in 2024, tumbling over 18% in a single day. This move triggered more than $62 million in long liquidations within 24 hours, according to data from Coinglass. Traders who placed bullish bets faced significant losses as the price collapsed below key support.
At the same time, trading volume surged by over 230%, reaching $5.39 billion. This spike in activity suggests that many of these trades involved panic selling. The sudden rise in volume reflects intense market reactions to macroeconomic developments.
Moreover, President Trump’s proposed tariffs caused fear across risk asset markets. Crypto assets, including Solana, suffered as a result. SOL’s sharp drop also placed it as the second most liquidated altcoin, following Ethereum. The sell pressure shows no signs of slowing down.
Sentiment Drops as Token Unlocks and Fear Index Align
Solana’s problems may worsen with scheduled token unlocks this week. Tokenomics data shows that 465,000 SOL, valued at over $50 million, will be unlocked. These unlocks could increase supply and lead to more selling pressure. This event creates added uncertainty about the token’s near-term price action.
The Crypto Fear and Greed Index hit a monthly low at 23. This high level of fear sends most traders to the sidelines, which affects demand and supply forces in the market. Investors can also refrain from purchases in a downtrend in anticipation of further downward price movements.
Despite the negative sentiment, one whale address staked over 71,000 SOL worth $7.6 million. This wallet shows confidence in Solana’s long-term value, but it remains in loss due to the price drop. Whale actions often influence broader market trends, but retail traders appear more cautious at this stage.
Analysts Warn of Crash Below $90
Additionally, top analyst Jason Pizzino stated that Solana price could crash below $90 in the coming days. He noted that the token’s failure to hold $100 signals a larger trend reversal. His chart pointed to $80 as the next support level. If this level gets breached, then it might return below the $60 mark.
These results are consistent with Solana’s 12-month trend. Since the mid of January, Solana price has drastically decreased over 60%. The current state is actually in line with the overall market. Other major altcoins also dipped to double-digit losses.
The major support level was a turning into a resistance zone at $114, which has been tested as a support level. Solana price needs to recover to this level to change this bearish outlook. Failing to bounce back it may continue with its declined trend for an extended period.
Breakdown Toward $77 Now in Play
Similarly, Crypto analyst Lucky Chart Ape confirmed a bearish breakdown in Solana price in his recent livestream. He highlighted a clear rejection from the long-term descending trendline. SOL also lost the critical $114 support, confirming a multi-month descending triangle breakdown.
According to Lucky’s chart, Solana price is now targeting a sweep of the $77.36 level. This zone marks the 78.6% Fibonacci retracement and a major liquidity area. A clean move below this could send the price toward the $67.29 demand zone.
More so, Lucky’s volume profile analysis revealed thin liquidity below $75. If Solana price breaks this zone, it may quickly drop into the $67–$70 range. Lucky noted that a short-term bounce is possible once the $77 level is swept. However, a true reversal needs a reclaim of the $114 level. Until then, Solana’s bearish trend remains intact.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
