Crypto Market Turmoil: Solana, XRP, and Dogecoin Plunge Amidst Worsening Sell-Off

The crypto market is grappling with a severe sell-off, with major cryptocurrencies like Solana (SOL), XRP, and Dogecoin (DOGE) experiencing significant price declines. As of February 24, 2025, Solana has plummeted by 14%, XRP by 8%, and Dogecoin by 8%, exacerbating the ongoing market downturn.



Market analysts attribute the recent price declines to several factors, including:

1. Market-wide bearish sentiment and regulatory uncertainty: The broader crypto market has been experiencing a downturn due to bearish sentiment and regulatory uncertainty. This has affected all cryptocurrencies, including Solana, XRP, and Dogecoin. For instance, the price of Solana (SOL) has dropped below $160 for the first time since November 2024, causing speculation about a potential crash to $100 (Source: "Can Solana price drop to $100 in the near term?"). Similarly, XRP and Dogecoin have also been experiencing price declines.
2. Upcoming token unlocks and increased selling pressure: The upcoming unlock of nearly $2 billion tokens from the FTX bankruptcy auction has raised concerns about increased selling pressure, which could drive Solana's price down further. This is a significant factor contributing to the bearish Solana price forecast (Source: "Will SOL recover, or is there more downside ahead?"). Additionally, the looming token unlock event of ~11mn SOL tokens on March 1, 2025, is expected to increase selling pressure and prompt the market to sell preemptively, fearing dilution and downward pressure on SOL's value (Source: "Several Factors’ Fuel Declines").
3. Market liquidations and negative market sentiment: The price correction has triggered widespread liquidations, adding to the volatility and accelerating the decline. In the past 24 hours alone, over $33.25 million in liquidations occurred for Solana, according to CoinGlass. This wave of liquidations highlights the immense pressure on bullish traders and underscores the prevailing bearish sentiment (Source: "Why Is Solana Price Dropping?"). Furthermore, the Bybit hacker laundering stolen funds using Solana meme coins has caused negative market sentiment, exacerbating the bearish Solana price prediction (Source: "Will Long Traders Push Solana Price Down?").
4. Lack of new buying activity and weak support: Despite the extended downtrend, buying support remains weak, which could lead to a drop between $112 and $126 for Solana. If the selling pressure does not recede, SOL could revisit $100 (Source: "Will Long Traders Push Solana Price Down?"). Additionally, the lack of new buying activity and weak support levels have contributed to the price declines of XRP and Dogecoin.
5. Scandals and controversies: The LIBRA memecoin scandal involving Argentine President Javier Milay has dented investor trust in Solana, as the token crashed by 94% following what many labeled a rug pull scam. This controversy surrounding Milay's endorsement and subsequent denial has only deepened skepticism among investors (Source: "Why Is Solana Price Dropping?"). Similarly, the quick rise and fall of LIBRA coin, which managed to rack up a value of more than $4 billion but then lost over 90% of its value, has also contributed to Solana's recent declines (Source: "Several Factors’ Fuel Declines").
6. Technical analysis and resistance levels: Solana continues to trade within a descending channel, with its current price sitting below all major moving averages, signaling sustained bearish momentum. The daily RSI sits at 31, signaling strong bearish momentum but not quite in oversold territory yet. The MACD is flashing red histograms below the zero line, reinforcing the ongoing downtrend (Source: "Why Is Solana Price Dropping?"). For XRP and Dogecoin, similar technical analysis indicators suggest a bearish trend, with prices struggling to break above key resistance levels.

These factors, combined with the unique characteristics and challenges faced by each cryptocurrency, have contributed to the recent sell-off in the crypto market, specifically for Solana, XRP, and Dogecoin. As the market continues to grapple with these challenges, investors and traders must remain vigilant and adapt their strategies accordingly.