Solana (SOL) has fallen below its crucial $180 support level, marking a significant shift in market sentiment. The drop comes amid controversy surrounding the Libra token launch and growing concerns about memecoin fatigue on the network.
The Libra Token Controversy
The recent launch of the Libra token on Solana’s network triggered a chain of events. Argentina’s President Javier Milei’s initial endorsement sent the token to a $4.5 billion market cap. The subsequent 94% crash after insider selling has damaged market confidence.
Technical Analysis
SOL’s price action shows concerning patterns:
- 12% drop in three days
- Break below critical $180-$190 support zone
- Current trading range: $175-$178
- Rejection at $187 resistance level
Market Implications
Several key developments suggest a broader market shift:
- Capital rotation from SOL to ETH has begun
- SOL/ETH pair shows bearish divergence
- Potential retest of 2021 ATH level at 0.058
- Declining interest in Solana-based memecoins
The End of Memecoin Season?
Market analysts compare the current situation to the 2020 DeFi surge. The memecoin trend appears to have benefited a select group of early movers. New projects face increasing scrutiny from a wary community.
Looking ahead, SOL faces a critical period. The network’s fundamental strength remains intact, but market sentiment needs time to recover. Traders should watch the $175 support level closely.
Tags: #Solana #Cryptocurrency #MemeCoins #TradingAnalysis #MarketTrends
Source: NewsBTC