- Solana is trading at $173, up 1.14% in 24 hours, despite an 11% weekly and 32% monthly decline.
- A $2.5 billion token unlock in March fuels the bearish outlook with the support at $155 while the resistance level is at $204.
- The RSI indicator shows a possibility of a rally with SOL approaching the $187 level and $207 should the buying pressure hold.
The crypto market has slightly recovered as the overall market cap and 24-hour trading volume surged by 0.30% and 6% to $3.18 trillion and $102 billion, respectively. Moreover, the market remains in a fear sentiment as the index drops to 37.
Solana (SOL) has been trading on a bearish note recently, with its price declining from its all-time high of $295 to the $160 level. Following the broad market correction in late January, SOL witnessed a sharp pullback, dropping below the $200 region.
However, SOL recovered above the $200 region, which it consolidated until mid-February. The upcoming unlock of 11.2 million SOL tokens worth around $2 billion on March 1st has fueled Solana’s downtrend, leading to a sharp decline to the $160 region.
At press time, SOL has slightly recovered, trading at $173, up by 1.14% in the past 24 hours, according to CMC data. The altcoin has declined by 11% and 32% on the weekly and monthly, respectively. In addition, the market cap has surged to $84.86 billion while the trading volume declined to $5.12 billion.
Potential Recovery for Solana Despite Recent Price Drop
Solana has experienced a sharp decline over the past two days. The ongoing sell-off is linked to a $2.5 billion token unlock scheduled for March, which has increased bearish sentiment. As a result, the price has dropped to $166. The analyst has highlighted the first major support at $155. If this level fails, the next significant support lies around $133.
$SOL has been in a free fall since the last 2 days.
— Crypto General 🧲 (@DaCryptoGeneral) February 18, 2025
The main reason behind this drastic fall is $2.5B unlock coming in march which is making the sentiment bearish. The major support for solana are marked in red.
First support is around $155, if it breaks the next stop is around… pic.twitter.com/DrR9KcLrvd
Despite the recent downturn, long-term projections remain bullish. Technical indicators suggest that adding positions near key support zones could be a viable strategy. Meanwhile, resistance levels at $204 and $288 may act as potential recovery points if buying pressure returns.
Will the Bulls Reverse the Continuous Downtrend?
Technical indicators on the 4-hour chart display a bullish reversal from the continuous downtrend. SOL has formed several green candlesticks breaking off the descending channel forming a bullish pennant structure.
Indicators such as the Relative Strength Index (RSI) indicate an imminent rally for SOL. The RSI is steadily rising from the oversold region at 40 indexes, indicating further room for growth. A rally above the neutral region toward the overbought region could push the price of the immediate resistance at the $187 region.
Source: TradingView
A successful rally above the $187 region could push for the next resistance at $207 and push for a break above $220. Should the bullish thesis fail, the support level at the $160 region will act as a barrier to prevent further losses.
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