Solana (SOL) took a hit today. It lost 11% overnight to below $140, which is its lowest price since October 12, 2024. The sell-off has pushed the market cap of Solana down to $69 billion making it the sixth-largest cryptocurrency.
Looking at the daily chart via trading view, the technical indicators, including MACD and RSI, are currently showing bearish momentum. However, analysts anticipate that a sudden price correction is about to happen.
Big Players Are Making Moves, But Not in a Good Way
About 135 large holders, each owning over 10,000 SOL, have exited or reduced their positions in the past month, according to Ali chart via X. Wintermute, an algorithm trading firm, withdrew $38 million in SOL from Binance today. This adds more selling pressure to the market as more investors might also rush out to cut losses.
FTX’s bankruptcy plays a part in this situation as well. About 11.2 million SOL tokens, worth about $1.77 billion, are set to be unlocked on March 1. These tokens are linked to FTX’s bankruptcy.
Firms like Galaxy Digital, Pantera Capital, and Figure acquired SOL for just $64 per token when the exchange collapsed. Now, with SOL over $130, they could sell for massive profits, flooding the market with even more tokens. This could push the price down.
Solana’s network activity is also shrinking. According to data from Coinglass, the number of active addresses now stands at 3.49 million, and new addresses are at a record low since September 2024.
Transaction fees have dropped from $33.36 million to $2.79 million, which means there’s a drop in demand. With fewer users, SOL might find it harder to bounce back.
Will Solana Hit $100, Or Can It Bounce Back?
Right now, the market is on edge. Analyst Crypto_McKenna says Solana is “structurally bearish” and warns that waning buying interest could push prices as low as $100.
Long traders are already in the red, with $21 million worth of involuntary sales registered. If this keeps up, SOL can drop further, potentially to $79.
Also Read: Cardano (ADA) Drops 11%, Will It Fall to $0.50 or Rebound
