Solana (SOL) Price Drops to $140 Amid Investor Fear Signals
SOL price has declined to $140, the lowest since October 2024. The token experienced a minor 4.5% recovery over 24 hours but remains down 17% since February 22. Over the past month, SOL lost nearly 38% of its value, with a market cap now at $70.6 billion.
Key points include:
- Investors show "fear" as selling pressure increases.
- Transfer volume dropped from $1.99 billion in November 2024 to $14.57 million.
- DEX volumes down 30% in the past week, lowest since October 2024.
- SOL Futures Open Interest decreased from $8.57 billion on January 19 to $4.41 billion.
- Downtrend attributed to reduced interest in memecoins post-LIBRA scheme.
- Negative capital inflows into Solana-based tokens indicate a lack of new liquidity.
SOL Price Trajectory
The MACD indicator shows a strengthening bearish crossover, suggesting potential prolonged selloffs. The RSI is oversold, indicating extreme selling pressure, which could lead to a short-term relief rally.
Current trading near the lower Bollinger Band ($140.63) indicates a significant deviation from the 20-day SMA ($179.60). Without a bullish catalyst and increased buying volume, SOL may face further declines, with analysts noting a possible drop to $120.