Solana’s woes took a terrible turn over the last few hours after the ongoing market crash when the top altcoin lost 18% in 24 hours.
The downturn fired up the bearish momentum already forming, pushing SOL prices to levels last seen in early September 2024.
Of the top 10 most valuable assets, Solana stands most affected by the ongoing market downturn. SL prices crashed by more than 18% in the last 24 hours, from yesterday’s high of $160 to an intraday low of $132, a price level last September 2024.
The loss has also forced the liquidation of leveraged Solana trades (most long positions) amounting to more than $110 Million.
With the latest value loss, SOL is now 55% below the ATH set in January, having shed 45% of this value in the last 30 days.
Why is Solana Down Today?
Two key factors might help explain Solana’s aggressive price drop today. The most immediate was the crash of the larger crypto market, which saw its market cap drop to $2.8 trillion after losing close to $400 billion.
Analysts argue the rather unexpected downturn was triggered by several factors and events that took place in the last three days.
The first was the news that Bitcoin ETFs recorded the second week of net outflows totaling $1 billion.
Second was the ByBit and 0xInfini hacks that resulted in the loss of $1.5 Billion worth of Ethereum. And thirdly, the investor sentiment meter dropped below 50, signaling a bearish reversal.
But even before the market crash, Solana had been dogged by several controversies that dragged its prices through the dirt for nearly three weeks.
The most impactful was the Libra scandal that dragged it below $200. The news that the FTX estate would unlock 11.2 million SOL later in the week fed the bearish momentum further, pulling SOL below $180.
Can Solana Recover From Such a Devastating Crash?
Yes, we believe Solana will eventually recover and possibly reach a new all-time high above $1000 before the end of 2025.
The bold claim is informed by Solana’s resilience, especially considering that it has been here before – after the FTX collapse when SOL prices dropped to $6. Macro factors like the Trump presidency, a crypto-friendlier SEC, possible ETF approval, and growing investor interest also point to a strong rebound for the Ethereum killer.
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