- Solana (SOL) dropped below $200 after a major crypto sell-off, hitting a low of $176.
- Traders are now eyeing key support levels to determine if a recovery or further decline is imminent.
A Crypto Market Hit by Massive Sell-Off
The crypto market just experienced a massive sell-off, and Solana (SOL) wasn’t spared. In just two days, the majority of digital assets saw their worst drop in over three years. The impact was harsh. Solana, which had recently hit highs of $244 in January, plummeted to an intraday low of $176 early this week, briefly bouncing back to hover near the $200 mark.
What Caused the Crash?
What triggered this crash? The market faced a combination of macroeconomic uncertainty and profit-taking. Over $2.2 billion worth of bullish positions were liquidated in just 24 hours, according to CoinGlass data. The result? A significant drop for nearly all top digital assets, including Solana.
Solana’s Price Action and Market Comparison
Solana’s price action mirrored the broader market slump. It broke below critical support levels, such as the daily SMA 200 at $182, which had been holding the price steady since October 2024. Even after a slight recovery, SOL is still down 6% in the past 24 hours, with a trading price of around $199.
Compared to the rest of the top 10 cryptocurrencies, Solana has been one of the least affected. While other major assets like XRP, Ethereum (ETH), and Dogecoin (DOGE) faced double-digit losses, SOL, along with TRX and BTC, only saw a 6%, 7%, and 4% decline, respectively.
What’s Next for Solana?
The question remains: What’s next for Solana? Market sentiment is cautious, and traders are closely watching key technical levels. Solana is now at a crossroads. The coin must maintain its position above the critical $182 level to avoid further losses. If it fails to do so and dips below $191, analysts warn that SOL could see a drop toward $138.
Key Levels to Watch for Solana’s Recovery
On the flip side, if Solana can rise above the daily SMA 50 at $211, it could break free from the current range and aim for a retest of its all-time high (ATH) of $295.
Solana’s future largely depends on how it performs around these crucial support and resistance levels. The market is unpredictable, and traders should stay alert as SOL battles to regain its footing.
