Solana (SOL) Price Drop: 50% Crash Risk?
Solana (SOL) is experiencing a downturn, raising concerns of a potential 50% price drop to $60. This follows a bearish trend in the broader crypto market, fueled by anxieties over US inflation. Technical analysis suggests a breakdown below the $125 support level of an ascending triangle pattern could trigger this significant decline.
Solana Price Plummets
The current Solana price is around $126, down 3% in 24 hours and reaching a two-week low. Over $12 million in SOL liquidations have been recorded, with long traders disproportionately affected. Analyst Ali Charts predicts a crash to $60, reinforcing the bearish sentiment.
Ascending Triangle Pattern Breakdown
The formation of an ascending triangle pattern on the SOL/USD chart is a key factor in this prediction. Breaking below the crucial $125 support level could confirm a bearish reversal and lead to a 50% price drop. Analyst Crypto Patel also notes a confirmed downtrend after SOL breached a critical demand zone.
Whale Activity Fuels Concerns
Adding to the bearish pressure, on-chain data reveals significant whale selling activity. One whale address recently unstaked 60,289 SOL (approximately $7.67 million), suggesting a bearish outlook. This, coupled with decreasing decentralized exchange (DEX) volumes hitting a six-month low, raises further concerns.
Low DEX Volumes and Reduced Network Activity
The decline in Solana DEX volumes to $14 billion weekly (compared to a January 2025 peak of $97 billion) highlights reduced network activity, which might contribute to the whale selling and further exacerbate the price drop. This decrease in activity likely reduces market confidence, potentially accelerating the downward trend.
Codeum: Securing the Future of Solana
The volatility in the Solana ecosystem underscores the importance of robust security measures. Codeum offers comprehensive blockchain security solutions, including smart contract audits, KYC verification, and custom smart contract development, to help protect projects against vulnerabilities and enhance user trust. Our services extend to tokenomics consulting and partnerships with launchpads and crypto agencies.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Conduct thorough research before making any investment decisions. Codeum is not responsible for any financial losses incurred.