Solana Drops 15% in 24 Hours, XRP Liquidation Drives Market Sell-Off
2min read Solana (SOL) has experienced a significant price drop, falling below a crucial trading level for the first time in six months. Despite a brief recovery, the cryptocurrency remains bearish on the daily chart. This downturn has pushed several top altcoins into a critical bearish zone on a monthly scale, signaling a long-term sell. Most Solana-based tokens are also showing extreme bearishness in the mid-term, gradually reaching the bottom after months of decline.
Despite the heavy selling pressure over the past two months, Solana's bulls have managed to defend the $100 level, which it briefly lost. The daily chart indicates that selling has halted, and the market is taking a breath, with the price currently at $111. While buying pressure is weak, it has managed to register substantial gains in recent hours. If the bulls sustain this pressure, further gains can be expected. However, bears remain active on the short-term scale, and if they mount pressure again, Solana could resume selling at full speed. Yesterday’s low rejection suggests an exhaustion in selling, which could bring a small recovery before resuming drops.
Key levels to watch for Solana include the $100 support level. A fall below this level could lead to a drop to $95.26, with a probable collapse into the $90 region. On the upside, a further increase could allow recovery to $122.7, with higher levels for tests at $136.7 and $147.5. The current trend is bearish, with high volatility.
Solana's recent price movements have been influenced by broader market dynamics, including the liquidation of XRP positions. The XRP liquidation event saw over $65 million wiped out as the price dropped 15% in just 24 hours, falling from $2.15 to $1.77. This sharp move followed rising global trade tensions and led to long positions getting crushed. The bearish signal wasn’t just in price action—XRP’s trading volume spiked to nearly $10 billion, but it came with selling pressure, not demand. The token also broke below the key $2 support and slid under the 200-day EMA for the first time since November 2024. Unless it reclaims this level, another XRP liquidation could drag prices to $1.52, $1.09, or even as low as $0.38 if selling pressure continues.
Solana has shown signs of recovery, surging 13% over 24 hours and reclaiming the $100 level, trading near $108.80. This rebound comes after a period of significant volatility, with the cryptocurrency facing immediate resistance at its 20-day Exponential Moving Average. The recent price action has been characterized by sharp declines and quick corrections, with technical signals hinting at potential further gains. Despite the volatility, Solana's price has managed to hold above the $100 mark, indicating a level of resilience in the face of market pressures.
Analysts are cautious, predicting further downside as the recent breakdown invalidated short-term bullish setups. The price action shows an ABC corrective pattern nearing completion, with the current price hovering around $90. A short-term recovery to $105 is possible if bullish divergence on the RSI plays out, but this would likely be a temporary move. If the trend continues, sol could drop further to $80 or even $70.48. A full reversal would only be considered if the price climbs back above $120, flipping resistance back into support. Until then, SOL remains in bearish territory.
