Solana Hits $90: What’s Behind the Drop?
The cryptocurrency market has faced a sharp correction, with Solana (SOL) emerging as one of the most affected tokens. Over the past 24 hours, SOL has dropped nearly 10%, slipping below the crucial $91 mark and catching traders off guard. The market-wide volatility has triggered billions of dollars in liquidations, pushing bearish sentiment to new heights.
Massive Liquidations Across Solana-Based Platforms
According to reports, Solana-based perpetual markets have accounted for over $70 million in liquidations during the last 24 hours, out of which $65 million were long positions. This surge in forced selling highlights the role of leverage in amplifying losses and has contributed to the token’s continuous downward trajectory.
Market-wide liquidation figures total $800 million, with Bitcoin (BTC) and Ethereum (ETH) also experiencing substantial declines. BTC dropped to a multi-month low of $72,800, while ETH fell to an estimated $2,150, dragging altcoins like Solana in their wake. Analysts caution that continued instability could force SOL prices toward the $70 barrier.
Technical Indicators Show a Bearish Trend
From a technical perspective, SOL remains under pressure, trading significantly below its 50-day moving average, which was around $132. Both the RSI (Relative Strength Index) and the MACD (Moving Average Convergence Divergence) also signal bearish momentum, further complicating chances of a swift recovery.
However, some forecasts bring a glimmer of hope. Standard Chartered recently projected a long-term bullish outlook for Solana, estimating its value to reach $250 by 2026 and potentially hitting $2,000 by 2030, assuming favorable macroeconomic conditions and increased capital flows into the market.
What’s Next for Solana?
While the ongoing bearish outlook dominates, market analysts emphasize the opportunity for a recovery if SOL can sustain its psychological support level around $90. Additionally, the shift from meme coins like Dogecoin and Shiba Inu towards established altcoins such as Solana could bolster demand in the medium term.
If you’re considering entering the Solana market during this dip, it’s crucial to equip yourself with a reliable cryptocurrency wallet. We recommend the Ledger Nano X, a popular hardware wallet known for its robust security features and user-friendly design. Secure your investment while waiting for Solana’s potential recovery.
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