Coinspeaker
Solana (SOL) Battles Supply Pressure: Can $180 Support Prevent Deeper Crash?
Amid the recent rug pull controversy of the Libra token, Solana
SOL
$181.8
24h volatility:
4.4%
Market cap:
$88.82 B
Vol. 24h:
$3.87 B
has experienced a massive pullback. The altcoin has lost the $200 psychological mark and is marking its third consecutive bearish day.
Crashing under its crucial support trendline, Solana’s price drops alongside a decline in its network strength. As Solana struggles to overcome the recent surge in supply, will buyers hold the fort at the $182 support level?
Solana Price Trend Puts $180 Support at Test
In the daily chart, the SOL price trend reveals a massive crash over the last few weeks. After creating a new all-time high of $295, Solana’s price has crashed to $182.
Photo: TradingView
Currently, it is trading at $185 with an intraday pullback of 1.34%. During the pullback, the SOL price trend breached the long-standing support trendline, marking an end to the bullish momentum.
However, with a bounceback from the 24-hour low at $180, the lower price rejection hints at a potential comeback. With multiple lower price rejections, this crucial zone could be a potential buying opportunity.
Bearish Momentum vs Bullish Divergence
The recent rug pull of Libra marks a new shift in market sentiment. Furthermore, the recent downfall has prevented a bullish crossover between the MACD and signal lines.
The average lines now continue the bearish trend, accompanied by a surge in new bearish histograms. Nevertheless, the daily RSI line remains resilient and avoids a drop to the oversold boundary line.
This suggests a potential bullish divergence, teasing a possible turnaround in the SOL price trend.
On-Chain Weakness as 11.2 Million SOL Token Unlock Nears
Amid the recent negative impact of Libra, the DEX trading volume of Solana has dropped by 25% in the last week. Furthermore, Raydium, a Solana-based protocol, has witnessed a 47% downfall.
Additionally, on March 1, 11.2 million SOL will be unlocked, bringing a new wave of supply. This supply was held by Galaxy, Pantera, and Figure, which they acquired during FTX’s bankruptcy.
Hence, with the incoming supply pressure and the recent rug pull event, a downfall in Solana seems inevitable.
Adding fuel to the bearish fire, Ali Martinez highlights a negative trend in Solana wallets. The number of wallets holding more than 100 SOL tokens has declined by 2.24% in the past two weeks.
The number of wallets holding more than 100 #Solana $SOL has declined by 2.24% over the past two weeks, dropping from 154,653 to 151,184! pic.twitter.com/66RomJPh3i
— Ali (@ali_charts) February 17, 2025
This drops the number of addresses from 154,653 to 151,184.
Solana (SOL) Price Targets: Key Levels to Watch
As per the SOL price action analysis, a downfall under the $180 support zone will crash SOL prices to $161. Beyond this, a prolonged downfall could lead to a test of the $150 psychological support and the $135 support level.
On an optimistic note, a bullish comeback will likely test the $200 psychological mark, followed by the 38.20% Fibonacci level at $210.
Solana (SOL) Battles Supply Pressure: Can $180 Support Prevent Deeper Crash?
