Solana supports the downward trend, data on the chain suggesting an increase in sales pressure dragging this Altcoin to $ 140.
Solana continues to put back gains made in 2024 Q4 at a time when market -scale diving tests digital assets. The 38% shift saw the floor revisiting the price range observed in October 2024.
An overview of the chain data shows that Solana confronts the growing sale of sale, by coincidence because it meets a clear drop in dex and transfer volumes.
Solana plunges further
While Solana organized a rare recovery of 4.5% in the last 24 hours, it is still down 17% during its seven -day race. The soil has returned 40% of its market capitalization to be currently located $ 70.4 billion. The loss of soil value increases concerns about a prolonged downward trend.
ALI MARTINEZ market chartist reports That chain data indicates an increased state of fear among investors, the net metric not made of profits / losses showing increased sales pressure. In addition, the analyst observed A sharp reduction in Solana’s transfer volume, which was $ 14.6 million, compared to $ 1.99 billion in November of last year.
In addition, decentralized exchange volumes (DEX) have dropped 30% more in the last seven days, testing the lowest level observed in October 2024. The open interest of the term contracts is half $ 8.5 billion on January 19 to 4.1 billion dollars on February 27, according to Coinglass data. The decline depicts the reduced confidence of the trader.
Market analysts attribute the downward trend to media threshing decolining parts even following the controversial Pump-And-Dump Balance, which presents the president of Argentina Javier Milei. The president faces a fraud investigation for having pretended to promote a misleading cryptography project which vaporized billions of values when he collapsed in the hours following the launch.
The mememanhiped media meters with memes coincides with capital entries in the soil tokens that become negative. Glassnode data suggest the lack of fresh liquidity.
Decline Reasons
The drop in Solana coincides with Bitcoin below $ 88,000, analysts attributing free fall to several macroeconomic factors.
The abrupt fall is linked to the announcement by President Donald of 25% prices targeting imports of Mexico and Canada. This increases inflationary fears, thus aggravating volatility on the cryptography market.
The drop -down level is inevitable because the sector deals with $ 1.5 billion. The attack on the Crypto exchange is linked to the Lazare group, sponsored by the state of North Korea. The scale of the feat of cold assets had an impact on the confidence of investors in the digital asset sector.
The feelings of the market around the ground ecosystem seem to be shaken by the news of the Crypto Exchange now disappeared FTX plans to unlock 11 million soil, which is estimated at $ 2 billion in March. This adds to the pressure of the fiasco of the same part, with reports of initiates of initiates and collaborations aimed at defrauding the inventors, which increases the negative bias.
Sol price trajectory
The Solana price graph according to the metric of the divergence of Mobile Average Convergence (MacD) illustrates a deepening bearish crossing. MacD training lines up with the histogram that supports the red bars to suggest an increase in the momentum and extended sales in the absence of a strong emerging bull catalyst.
In addition, the relative resistance index (RSI) of this Altcoin is 33.02, which implies that it is in the territory of the occurrence. This implies that the soil sales pressure has reached extreme levels. Nevertheless, traders should be cautious because RSI could be stuck in the territory of occurrence for a prolonged spell during strong downward trends.
The Crypto Martinez analyst considers that the ascending and enlarging formation on the right is noticeable in the 3 -day table of the ground. The current price is in this training, addressing crucial support at $ 130. The analyst notes that the fact that the bulls defend the level of $ 130 could trigger a new downward trend around $ 65.
Analysts warn that Sol could fight more to recover the lost terrain if it does not meet a bullish catalyst to trigger purchase volumes. The situation allows a new drop at a price of $ 120.
