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Solana has lost almost 45% of its value in the last month due to severe downward pressure as the larger cryptocurrency market battles liquidity issues. Due to the precipitous drop, SOL has reached a pivotal point, and traders are keeping a careful eye on important price levels that could determine the asset's future course.
As the market's perception of high-risk assets declined in February, Solana's sell-off grew more severe. Risk-on traders have been discouraged from participating in Solana's ecosystem as a result of the $LIBRA meme coin's collapse, which caused investor losses of almost $100 million.
According to technical analysis, the 200-day moving average break was a crucial turning point that indicated a more extensive correction. Selling momentum increased as soon as SOL lost support at $190, driving the asset down to lower key levels.
Immediate support zone: $160. Solana broke below the 200-day moving average and is now trading at about $168. There is an immediate support zone at the $160 level that might offer short-term respite. In the event that buying pressure increases, a rebound from this area might lead to a brief recovery.
Godfrey BenjaminLevel of critical support: $145. If $160 does not hold, SOL's next significant support is at $145, which was a potent accumulation zone during the rally in November and December of 2024. An extended decline toward lower ranges could be indicated by a breakdown below this level.
The recovery's key resistance is $210. SOL needs to recover $210 on the upside in order to stop its downward trend. Historically, this level has served as a significant resistance point and is in line with the 50-day EMA. In the absence of a robust surge above this threshold, any brief rallies may be perceived as dead-cat bounces.
Solana's future is still unclear, particularly given the low level of market liquidity. The asset might see more declines if buyer interest does not pick up at the $160 or $145 support zones. Nonetheless, a clear reclaiming of $210 would suggest a change in attitude and might pave the way for a rebound.
Dan Burgin
Vladislav Sopov