Solana Risks Further Drop as $180 Support Retested

Solana (SOL) has lost its key support zone amid the launch and subsequent crash of the controversial Libra (LIBRA) token, resulting in over a 12% decline in three days. Analysts warn of potential deeper corrections.

Key Events

Solana experienced a pullback following the launch of the Viva La Libertad project and LIBRA token, endorsed by Argentine President Javier Milei.
The LIBRA token's market cap reached $4.5 billion before it crashed 94% after insider sales exceeded $100 million.
Market sentiment shifted negatively due to exhaustion from memecoin scams within Solana, causing SOL’s price to drop to $190 and then to the $180 support zone.
After a brief recovery attempt, SOL fell below the $180 support following Milei's retweet about investing in LIBRA.
Currently, SOL is fluctuating between $175 and $178, reflecting a 6.6% daily retrace.

Market Analysis

Analysts are observing the SOL/ETH trading pair, indicating a shift of capital from SOL to ETH.
Potential retest of the 2021 ATH level at 0.058 for SOL/ETH noted as influential this cycle.
Concerns that the recent memecoin activity could damage Solana's on-chain ecosystem, affecting SOL's performance.