Solana' sentiment hits yearly low – Is a deeper drop to $70 ahead?
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Solana (SOL) has been one of the standout performers in the crypto space, but its recent price action tells a different story. The altcoin has faced a sharp decline amid the broader market correction, pushing its sentiment to the lowest levels in over a year. With key support levels breaking down, analysts are now debating whether SOL is poised for further losses or if this capitulation marks a potential bottom.
Over the past 24 hours, the broader cryptocurrency market has suffered another wave of selling pressure. Bitcoin (BTC) dropped below $90,000 for the first time since November, setting the stage for an altcoin sell-off. Solana, closely following BTC’s trajectory, has lost 12% from its $150 support level, hitting a five-month low at $131. The bearish sentiment surrounding SOL has intensified, fueled by concerns over multiple Solana-based memecoin scams, such as the Libra token collapse that drained over $100 million from investors. The shift in sentiment has prompted capital rotation from Solana into Ethereum, further pressuring SOL’s price action.
Market analysts are divided on the potential trajectory for Solana in the coming weeks. Crypto analyst Jelle notes that SOL has retraced nearly 50% from its January highs and is now sitting at a critical support zone between $130 and $140—historically significant levels from both the 2021 all-time high breakout and the 2024 rally. Holding above this zone is seen as crucial, especially with the upcoming token unlock event on March 1st, which could introduce additional selling pressure.
Meanwhile, Ali Martinez has drawn parallels between Solana’s BTC trading pair and Ethereum’s past price action against BTC. If this historical pattern holds, SOL/BTC could drop another 50% to 0.0008, which would correspond to Solana's price falling to the $70 range. However, not all analysts share this bearish outlook. Altcoin Sherpa suggests that the $90-$125 region presents an attractive buying opportunity, arguing that Solana is far from "dead" and could see a recovery, albeit with expected volatility.
As of this writing, SOL trades at $141.36, reflecting a 45% monthly decline. Whether this level marks a temporary bottom or the start of a deeper correction will depend on its ability to defend the current support zone. Investors should closely monitor upcoming market events, particularly Bitcoin’s price action and the token unlock, which could determine Solana’s next major move.
Over the past 24 hours, the broader cryptocurrency market has suffered another wave of selling pressure. Bitcoin (BTC) dropped below $90,000 for the first time since November, setting the stage for an altcoin sell-off. Solana, closely following BTC’s trajectory, has lost 12% from its $150 support level, hitting a five-month low at $131. The bearish sentiment surrounding SOL has intensified, fueled by concerns over multiple Solana-based memecoin scams, such as the Libra token collapse that drained over $100 million from investors. The shift in sentiment has prompted capital rotation from Solana into Ethereum, further pressuring SOL’s price action.
Market analysts are divided on the potential trajectory for Solana in the coming weeks. Crypto analyst Jelle notes that SOL has retraced nearly 50% from its January highs and is now sitting at a critical support zone between $130 and $140—historically significant levels from both the 2021 all-time high breakout and the 2024 rally. Holding above this zone is seen as crucial, especially with the upcoming token unlock event on March 1st, which could introduce additional selling pressure.
Meanwhile, Ali Martinez has drawn parallels between Solana’s BTC trading pair and Ethereum’s past price action against BTC. If this historical pattern holds, SOL/BTC could drop another 50% to 0.0008, which would correspond to Solana's price falling to the $70 range. However, not all analysts share this bearish outlook. Altcoin Sherpa suggests that the $90-$125 region presents an attractive buying opportunity, arguing that Solana is far from "dead" and could see a recovery, albeit with expected volatility.
As of this writing, SOL trades at $141.36, reflecting a 45% monthly decline. Whether this level marks a temporary bottom or the start of a deeper correction will depend on its ability to defend the current support zone. Investors should closely monitor upcoming market events, particularly Bitcoin’s price action and the token unlock, which could determine Solana’s next major move.