Highlights
Despite setbacks, bear markets, and other factors, Solana (SOL) price performance has been better than many other top cryptocurrencies. However, its recent downtrend concerns investors, as the price has declined nearly 50% from its 2024 high of $264. More importantly, the price has dropped 15% over the week and 40% over the month, which is concerning. Although this altcoin’s decline came with the broader market’s crash, investor sentiments have triggered fear, so what’s next?
After a 40% crash over the month and hitting a four-month low of $134.69, the Solana price has gained a minor recovery. At present, it trades at $142.39 after a 1.5% recovery in the last 24 hours. However, investor sentiments turned bearish amid building fear.
According to the crypto analyst Ali Martinez’s conclusion, the Glassnode Net Unrealized Profit/ Loss metric reveals that the SOL investors have entered the fearful phase after spending months in greedy or optimistic sentiments. This drop is also visible in the token trading volume, which is down 18% to $13 billion.
Many crypto analysts have confirmed this bearish trend, one saying:
You can dip in briefly and come out with a tasty 1-2% profit at this $Solana price. If that line breaks, it’s heading to $80.
The broader crypto market crash has severely impacted the Solana price. However, many other factors influenced this, beginning with the LIBRA or Solana meme coin scam.
Since the introduction of Pump.Fun, the number of Solana-themed meme coins has increased multiplefold. In addition, the intensity of pump-and-dump scams rose, and the LIBRA token scam is the most prominent example.
This resulted in the Solana meme-themed cryptocurrencies’ market cap declining from $25 billion in January to $8.6 billion. Other factors like the drop in gas fees, DEX volume, and active address count drop show investors’ confidence has plummeted in this ecosystem.
Interestingly, another significant factor to consider is the 11.2M SOL token unlocks on March 1, which created selling pressure. These unlocks would provide additional liquidity and come from the FTX distribution plan.
As a result, the SOL price mat fluctuates; some believe in a possible recovery, while others believe in further consolidation.
Many crypto analysts confirm this bearish trend, with Ansem stating:
The $120-$140 range is a must-hold area. Shorting after a 50% drop in a month is not a good trade, but overall, I remain bearish on most crypto assets in the high timeframe.
Although the outlook is bearish, there are also indications of a possible recovery. The analysts’ Solana price prediction reveals that the token must hold the $120-$140 support for recovery. If this happens, the SOL price may rebound towards the $170 resistance.
However, if Solana breaks below $120, it could test psychological support at $100.
Investors are fearful amid SOL price struggles and the global crypto market crash. With the key support between $120 and $140, the token can either move toward $170 or $100, depending on its move from the current level.
However, these moves will depend on market sentiments, ecosystem recovery, and the impact of the upcoming unlocks. Investors must analyze the situation further and plan strategically.
Former U.S. SEC Chair Gary Gensler appeared on CNBC's "Squawk Box" and addressed his concerns…
Dogecoin (DOGE), the pioneering meme coin, has taken a hit as the crypto market crashed…
Ethereum (ETH) experienced a drop of around 3% in the past 24 hours, to trade…
The cryptocurrency market is expecting a big week ahead, as the U.S. Federal Reserve prepares…
The crypto market was buzzing this week with big whale moves, fresh economic reports, new…
Pepe Coin price is outperforming other mainstream meme coins today, soaring around 13% over the…