Solana Plunges 40%: Investors Fearful as Crypto Giant Hits Four-Month Low

Solana (SOL) investors are grappling with a 40% price decline, sparking fear and uncertainty about the cryptocurrency's future. Despite maintaining its position among top-performing cryptocurrencies, Solana's recent downtrend has raised concerns, with the price dropping 15% over the week and 40% over the month.

After a 40% crash over the month, Solana's price has hit a four-month low of $134.69, but it has since recovered to $142.39. However, investor sentiments have turned bearish, with the Glassnode Net Unrealized Profit/Loss metric indicating that SOL investors have entered a fearful phase. The token's trading volume has also decreased by 18% to $13 billion.

Crypto analysts have confirmed the bearish trend, with one predicting a potential drop to $80 if the current support level breaks. The broader crypto market crash, along with factors like the LIBRA meme coin scam, a decline in gas fees, DEX volume, and active address count, have contributed to Solana's price drop.

An upcoming 11.2M SOL token unlock on March 1 is expected to create selling pressure, further impacting the price. Analysts suggest that Solana must hold the $120-$140 support for a potential recovery to $170. However, if the token breaks below $120, it could test psychological support at $100.

Investors are advised to analyze the SOL price further and plan strategically, as market sentiments, ecosystem recovery, and the impact of upcoming unlocks will play a crucial role in determining the token's future trajectory.