Solana Price Drops 9% Amid Decline in Network Activity and Liquidations
Solana's price has decreased by 9%, reaching $166 amid a broader market downturn. This follows the LIBRA meme coin incident, which caused significant liquidations in Solana’s ecosystem. Key points include:
- SOL is down 38% over the past month.
- Market cap reduced to $81.37 billion from $127.5 billion in January.
- Active addresses have fallen from 18.5 million to 8.4 million.
- Network volume dropped from $2 billion to $26 million.
Token Unlock Concerns
Upcoming token unlocks could add over 15 million SOL tokens (valued at $7 billion) to the circulating supply, raising inflation rates and worries about price stability.
Market sentiment described as “dangerous” for investors. Capital may rotate towards Ethereum.
SOL Price Analysis
- MACD indicates bearish momentum; no signs of reversal.
- RSI at 29 suggests oversold conditions but further declines are possible.
- Price near lower Bollinger Band shows increased selling pressure.
If SOL holds above $160 with strong buying volume, it could rebound to $175–$180. A drop below $160 may lead to support at $145 or further down to $130.