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The crypto market is facing selling pressure, impacting major assets, including Solana. A sell-off on the cryptocurrency markets at the start of the week has resulted in the majority of digital assets seeing their worst two-day fall in over three years.
A combination of macroeconomic uncertainty and profit-taking has contributed to the recent sell-off, with over $2.2 billion of bullish crypto positions liquidated over 24 hours, according to CoinGlass data. After increasing since early November, nearly all of the top digital tokens are currently down significantly this year.
SOL fell from its recent highs, reflecting the overall market slump. Solana has plummeted since reaching highs of $244 on Jan. 30 and is on course to record its fourth straight day of decreases since that date, including today's dip.
Tomiwabold OlajideThe drop caused Solana to fall below $200, reaching an intraday low of $176 early Monday. Solana briefly reached $200 after a slight rebound, but it is now trading near this level as of press time.
Solana has pared its losses slightly, but it is still down 6% in the previous 24 hours, to $199. Solana is among the least affected of the top 10 cryptocurrencies in the market crash. While the rest of the top 10 cryptos experienced double-digit losses, SOL, TRX and BTC lost 6%, 7% and 4%, respectively.
What's next?
Amid the recent sell-off, the sentiment on the cryptocurrency market remains cautious. As Solana hovers near $200, traders are watching crucial technical levels.
During the decline, Solana broke below the critical daily SMA 200 at $182, which had held up SOL price since October 2024.
Although Solana has regained this key level, it must maintain above it to prevent further declines. According to crypto analyst Ali, if Solana (SOL) fails to hold above $191, a drop to $138 could be imminent.
On the other hand, Solana must firmly surpass the daily SMA 50 at $211 to escape range trading in the short term and aim for a retest of its ATH at $295.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov