Solana dropped below the critical $200 support level and there have been concerns about a potential drop to $100. This decline comes following a broader cryptocurrency market downturn following the recent Federal Open Market Committee (FOMC) meeting.
In the meeting, the Federal Reserve reduced interest rates by 25 basis points, as expected. However, doubt developed when Federal Reserve Chair Jerome Powell declared that no additional interest rate decreases are expected until 2025. This increased pressure on financial markets, especially cryptocurrency.
Due to the decline of Bitcoin, there has been a major pull down of altcoins and meme coins. Amidst all this, Solana experienced a sharp 30% drop, falling from a peak of $263 to its current level near $183.
Currently, Solana is trading at $190, reflecting a 7.18% loss in the past 24 hours and adding to bearish sentiment. The Relative Strength Index (RSI) is below 40, signaling weakness and potential oversold conditions. If the RSI moves closer to 30, it could trigger further selling pressure.
If the market downturn continues and bears take control, Solana’s price could drop to $160, with further decline to $140 or even $100. However, if bulls regain strength, Solana may recover and aim to break back above the $200 resistance level.
The data from Coinglass shows that trading volume for Solana jumped 33% to $18 billion, but open interest fell 16% to $4.41 billion. This indicates increased trading activity as traders adjusted their positions.
Liquidation data suggests mixed sentiment among traders, with both long and short positions being liquidated. High volatility in Solana’s price, especially during big moves, highlights the instability in the derivatives market.
Meanwhile, DeFiLlama data shows Solana’s Total Value Locked (TVL) dropped sharply from $11 billion to $7.93 billion, a 10% decline in just the last day. This drop reflects growing bearish pressure and raises concerns for investors.
Solana’s price could potentially drop to $100 if selling pressure continues. However, a recovery is possible if stronger support levels hold.
Also Read: Bitcoin Falls to $95K after Fed Cuts Interest Rate by 0.25%
