In the wake of escalating tensions in the financial markets, Solana (SOL) has suffered a significant blow, with its price plummeting to $114. This decline comes despite President Donald Trump’s announcement regarding a “Strategic Bitcoin Reserve.” Investors are increasingly alarmed as Solana’s network revenue plummets by 93%, pushing its value to a three-year low, raising concerns that it might soon test critical support below $100.
What Does the Data Reveal About Solana?
The realized price of Solana has dropped to $114, the lowest since May 2022, indicating that the average investor is currently at a loss. Historical trends suggest that cryptocurrencies trading below their realized prices often experience heightened selling pressure.
How Low Can Solana Go?
While Solana strives to maintain a price point around $127, technical indicators reveal ongoing weakness. With the current price below key moving averages and an RSI of 44, further declines are plausible. Experts note that the $110 mark is vital for stability; falling below this could lead to prices nearing the $100 threshold.
- Solana’s realized price has dipped from $134 to $114.
- Network revenue has fallen to $4 million, the lowest since September 2024.
- The total value locked (TVL) in Solana has decreased from $12 billion to $6.38 billion.
If Solana can breach the $139 resistance level, there might be chances for a rebound. Yet, negative market sentiment and macroeconomic uncertainties pose challenges to any potential recovery. Investors are particularly attentive to the Federal Reserve’s interest rate decisions and ongoing global trade dynamics.
