Home Altcoins News Solana Price Decline Continues, SOL Hits $196 After 30% Drop

Solana Price Decline Continues, SOL Hits $196 After 30% Drop

Solana price

The cryptocurrency market has been hit hard by a significant downturn, and Solana (SOL) is not immune to the ongoing struggles. Over the past few weeks, Solana’s price has dropped more than 30%, with the latest slump pushing the coin to trade at around $196. The price continues to struggle, leaving investors and analysts alike wondering where the support lies for the large-cap altcoin.

Forced Liquidations and Ongoing Market Struggles

The most recent drop in Solana’s price can be attributed to over $85 million in forced liquidations in the past 24 hours. The majority of these liquidations involved long traders, further driving the price down. Solana’s price has now fallen about 33% from its all-time high (ATH) of $293, set just two weeks ago, to its current level.

The price movements reflect the broader market’s downturn, with Solana joining a host of cryptocurrencies that have seen significant losses. However, the drop in Solana’s price is particularly striking given its past performance and its position within the top 10 cryptocurrencies by market capitalization.

Solana Price Analysis: Is $191 the Key Support Level?

From a technical analysis standpoint, Solana had been showing signs of bullish continuation until recently. The coin had been forming a continuation pattern since last November, signaling potential for more gains. Despite the recent downturn, Solana managed to rebound from its 50-weekly moving average (MA) and the falling logarithmic trend that previously acted as resistance.

Crypto analyst Ali Martinez notes that Solana has recently retested the lower border of a macro-rising channel. Martinez highlights that Solana’s price must hold the support at around $191 to avoid a deeper selloff. If the price does not maintain this level, it could risk further declines, with some analysts predicting that Solana could drop as low as $138.

This level of $191 is now crucial for Solana, as breaking below this support could open the door to more significant losses. On the other hand, a rebound from this point could signal a potential recovery for the altcoin, despite the broader market’s bearish trend.

Solana’s Strong Web3 Ecosystem and Investor Confidence

Despite the recent price struggles, Solana’s network remains strong and continues to grow, particularly within the Web3 and decentralized finance (DeFi) space. The Solana network boasts a total value locked (TVL) of over $9.4 billion, with more than $11.7 billion in stablecoin market capitalization.

Solana’s DeFi platforms, led by Raydium DEX, are integral to its ecosystem and have seen strong participation from mainstream retail traders as well as whale investors. These institutional investors have been diversifying their portfolios by backing Solana, believing in its long-term potential despite the recent price slump.

Moreover, over 388 million SOL tokens have been staked to help secure the Solana network, providing an additional layer of stability. This commitment from investors suggests that Solana still has significant backing, even amid short-term market volatility.

What’s Next for Solana?

The future of Solana’s price largely depends on how it performs in the coming days. The price action at the $191 support level will be critical to determining whether the coin can avoid a deeper downturn. A rebound from this point could help Solana regain some of its losses, but a failure to hold this support could lead to further price erosion.

In the broader picture, the Solana network’s growth and solid Web3 ecosystem could provide a strong foundation for future growth, even if short-term market conditions remain challenging. Investors will need to keep a close eye on Solana’s price action over the next few days to assess whether it can hold critical support levels and rebound from this recent price decline.

For now, Solana’s investors and traders are awaiting confirmation on whether the $191 level will hold, as a breach of this support could see the price drop further toward $138.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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