Solana (SOL) has taken a significant hit in the past 24 hours, plummeting over 20% as the broader cryptocurrency market grapples with geopolitical tensions and Japan’s recent interest rate decision. The fifth-largest cryptocurrency by market capitalization has breached its crucial support level of $121, sending shockwaves through the crypto community.
With SOL trading near $113 at press time, trading volume has surged by over 245%, indicating heightened investor activity amidst the price drop. The rapid decline has fueled speculation about the potential role of large investors, or ‘whales’, in manipulating the market. A former Coinbase angel investor has alleged on X (formerly Twitter) that Solana is being artificially suppressed to force retail investors to sell at a loss, allowing whales to accumulate the token at a discounted price.
The market turmoil has resulted in the liquidation of nearly $65 million worth of Solana positions, with long positions accounting for the majority of the losses. Technical analysis suggests a bearish outlook for SOL, with the cryptocurrency trading below its 200-day Exponential Moving Average (EMA). A daily candle closing below $122 could signal a further decline of up to 30%, potentially pushing SOL to the $77 level. However, a close above $122 could indicate a potential price reversal towards $155.
Also Read: Solana Implodes – $1.1B Wiped Out As Crypto Market Crashes 20%
While the Relative Strength Index (RSI) suggests the market may be oversold, indicating a potential rebound, Solana’s open interest has dropped by 26%, signaling waning investor confidence. Critical liquidation levels are currently at $100 and $130, with $40.5 million and $140 million worth of long and short positions, respectively, at risk.
As the crypto market remains volatile, investors are advised to exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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