- Solana drops to $132 as Bitcoin’s decline below $90,000 triggers widespread selling.
- Whale investors offload SOL, with 135 addresses reducing holdings in the past month.
- Strong resistance at $155.28 prevents recovery, keeping SOL in a bearish trend.
- RSI at 25 suggests oversold conditions, hinting at a possible rebound.
Solana (SOL) is experiencing a significant downturn, reflecting the broader market’s struggles. The recent decline follows Bitcoin’s (BTC) drop below the critical $90,000 level, triggering fear among investors and prompting a widespread sell-off. As a result, SOL plummeted to a recent low of $132, weighed down by increasing selling pressure.
At the time of writing, Solana is trading at $139.78, marking a 12.30% drop in the past 24 hours. The asset holds a market capitalization of $68.00 billion, with a substantial 24-hour trading volume of $24.73 billion.
Whales Offload SOL as Market Uncertainty Grows
On-chain data suggests that whale investors are offloading their SOL holdings. Crypto expert Ali Martinez revealed that 135 whale addresses holding over 10,000 SOL have either sold or redistributed their holdings in the past month. This pattern indicates that large investors may be taking profits or adjusting their positions amid ongoing market uncertainty.
Solana Faces Strong Resistance, Bulls Struggle for Breakout
From a technical perspective, SOL is facing strong resistance that has prevented any meaningful recovery. Market observer Captain Faibik highlighted that bulls are struggling against a crucial horizontal resistance on the monthly time frame, stating that a breakout above this level would mark the official start of a bull run.
Despite the current bearish trend, Faibik remains optimistic about SOL’s long-term prospects, predicting that Solana could reach $1,000 in the next bullish cycle.
Key resistance levels remain critical for SOL’s next move. The immediate resistance stands at $155.28, and a decisive breakout above this level could signal the beginning of a bullish reversal. Meanwhile, the daily Relative Strength Index (RSI) is at 25, nearing 1.5-year lows, suggesting that SOL is heavily oversold and could be primed for a potential bounce.
Looking ahead, Solana’s short-term outlook remains bearish unless Bitcoin stabilizes. If SOL can break above $155.28, it could pave the way for a trend reversal. However, failure to reclaim key levels may lead to further downside pressure. As market sentiment remains fragile, traders and investors will closely monitor Bitcoin’s movements, which continue to influence the overall crypto landscape.
Related Reading | FTX Token (FTT) Volatility: Bankman-Fried’s Post Pushes Price, Then Fades Quickly
