Coinspeaker
Mar 17, 2025
8 0

Solana Price Drops 3.5% as Analysts Warn of Possible 95% Crash

1 min

Solana's price has dropped 3.5% to below $130, currently trading at support level of $125 following a market downturn. The cryptocurrency faces a significant correction after reaching peaks in January 2025.

Potential Price Decline

Analyst Ali Martinez noted the SuperTrend indicator turned bearish for Solana (SOL). Previous occurrences of this signal led to a 95% decline, suggesting SOL could drop to under $10 if trends continue.

Network Activity Decline

Data indicates a sharp decrease in Solana's on-chain activity:

  • Daily network transactions fell to 24,505 from an all-time high of 71,738 on January 23.
  • Total value locked (TVL) in DeFi applications decreased by 41% from January peak, dropping from $12.1 billion to $7 billion by March 17.

Negative Funding Rates and Open Interest

Solana's futures market shows concerning trends:

  • Open interest fell from $8.57 billion on January 17 to $4.03 billion on March 17.
  • Negative funding rates indicate traders are closing positions.

A dip below $125 may lead to SOL testing the next support level around $100.