In a shocking market development, Solana (SOL) sentiment has plummeted to its lowest level in over a year as the cryptocurrency faces a potential further drop to $70. This bearish outlook comes amid a broader market correction that has already seen SOL decline 45% from its recent highs.
Market Correction Triggers Solana Selloff
The crypto market’s recent downturn has hit Solana particularly hard, with Bitcoin’s drop below $90,000 triggering a cascade of selling across major altcoins. SOL has retreated from $150 to $131, marking its lowest point since September 2024.
Key Factors Behind the Decline
- Widespread memecoin fatigue following multiple scams
- $100 million Libra token crash causing capital rotation to Ethereum
- Upcoming March 1st token unlock creating selling pressure
- Technical breakdown below critical support levels
Expert Analysis Points to Further Downside
Multiple crypto analysts have weighed in on SOL’s technical outlook, with concerning predictions:
- Ali Martinez: Projects a potential 50% drop to $70 based on SOL/BTC pair analysis
- Jelle: Identifies $130-140 as crucial support zone that must hold
- Miles Deutscher: Labels current phase as a ‘capitulation moment’ but suggests potential rebound
Support Levels to Watch
Traders should monitor these critical price levels:
- Primary support: $130-140 zone
- Secondary support: $90-125 region (identified as accumulation zone)
- Worst-case target: $70 (based on SOL/BTC analysis)
Market Implications
The current price action could have significant implications for the broader crypto market, particularly the growing Solana ecosystem. The upcoming token unlock on March 1st could add additional selling pressure, potentially accelerating the downward momentum.
Despite the bearish outlook, some analysts, including Altcoin Sherpa, maintain that Solana isn’t ‘dead’ and suggest the current levels present buying opportunities for long-term investors. However, traders should prepare for increased volatility in the coming weeks.