Solana Faces Severe Decline: What Lies Ahead After a 40% Drop?
The sentiment around Solana has plummeted with its recent significant price drop. Investors are concerned about its future amidst critical market events.
Solana Faces Severe Decline: What Lies Ahead After a 40% Drop?
Solana is down, sliding 45% from its all-time high. Will SOL continue to experience losses ahead of the FTX Estate liquidation in early March?
Amid declining volumes since the rise of the Pump.Fun, the appeal of Solana appears to be diminishing based on recent price trends. Initially buoyed by meme coin excitement and potential approvals for the first Solana ETF by year’s end, SOL is now in a downward spiral.
In just four weeks, SOL holders have faced dramatic volatility, with the coin losing over 40% and dropping below key support levels.
Solana Price Drops 40% In 1 Month: Will SOL ETFs Reignite SOL Price Rally?
The latest data from Coingecko indicates that Solana is trading around $170, below the critical support level established in December and January 2025. Following a brief uptick where the price peaked at $295 on January 25, SOL now risks further declines with investors potentially panicking and selling off.
Investor sentiment has reached a new low, according to Santiment, an analytics platform examining on-chain data. Notably, sentiment dipped to its lowest monthly level, with prices collapsing down to $161.
š§ Solana sentiment has dipped to its lowest level since the significant drop on January 20th.
ā Santiment (@santimentfeed) [February 18, 2025]
The collapse is linked to a series of losing days following the surge to $295 on January 19, just after President Donald Trumpās team launched the āOfficial Trumpā meme coin ahead of his inauguration.
FTX Estate To Dump SOL on March 1 Amid Network Reliability Concerns
Unlike Bitcoin and Ethereum, which are finding ways to push past resistance levels, Solanaās dramatic downturn is expected to continue. It is anticipated that the FTX estate will unlock 7.5 million SOL on March 1, adding more supply to the market, which may push prices down further.
Conclusion
Analysts are increasingly critical of Solana, especially regarding its capacity to support DeFi protocols effectively. Increasing transaction failures raise doubts about the reliability of the network.
Explore More: Crypto Trends for Bullrun ā January 2025
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