Solana Drops 4.66% Amid $400M Liquidation Event

Solana's price experienced a notable decline, dropping 4.66% over the past 24 hours, stabilizing at $159.74. This price movement was triggered by a $400 million liquidation event, which was initiated by substantial Bitcoin sell-offs. The approval of leveraged ETFs, while anticipated to attract institutional investments, also introduced near-term volatility concerns, unsettling altcoin traders.

Despite the price dip, Solana's daily active addresses have shown a strong upward trend, currently standing at approximately 16.93 million. This increase in user activity on the Solana network indicates rising adoption and usage, which often precedes price recoveries. The recent correction may be more liquidity-driven than fundamentally bearish, offering bulls a reason to remain optimistic.

Technical analysis on the 4-hour chart reveals that SOL faces immediate resistance at the $165–$168 range. This zone aligns with the 24-hour high of $168.34 and the upper Bollinger Band. SOL’s price action has shown multiple rejections from this level, making it a critical barrier for bulls to overcome. A successful breakout above $168 could potentially trigger a rally toward $179.77. However, if SOL fails to maintain support above $158, it could slide further to test the $152.5 zone, which is a key psychological and technical support level.

Bulls are eyeing a breakout at $168 to regain upside momentum. The growing number of active addresses suggests strong network usage, which could support a price recovery. However, the immediate resistance at $165–$168 and the potential for further declines to $152.5 highlight the challenges ahead for Solana's price movement.