Why Is Solana Crashing: Will SOL Recover After 40% Monthly Drop?
crypto news
Other
7 days ago
Why Is Solana Crashing: What Behind 40% Price Drop, Will SOL Recover?
Solana has been facing a severe downturn in recent weeks, triggering concerns among investors and traders. At the time of writing, SOL is trading at $123.47, reflecting a 3.04% intraday decline and a 10.43% drop over the past week. However, the most alarming trend is its massive 40% price drop in the past month, falling from $137.83 to as low as $113.76.
Solana Price
Source: CoinMarketCap
This Solana price crash has left the crypto community wondering: why is Solana crashing today?
Why is Solana Falling? Reasons Behind SOL Crash
Several factors have contributed to the ongoing Solana price drop, including large whale withdrawals, macroeconomic uncertainties, and technical chart patterns indicating further declines.
1. Heavy Solana Withdrawals by Whales
A major factor driving Solana crash news is the massive withdrawals by whales. On March 11, a whale withdrew 195K SOL ($23.2M) from multiple exchanges, including Bybit, OKX, and Gate.io, raising concerns about a large sell-off.
Solana Whale Transfer
Source: X
Whale Alert data also reported suspicious transactions:
March 7: 1,000,000 SOL ($146.9M) moved from Kraken to an unknown wallet.
March 6: Multiple transactions between unknown wallets, including 1.1M SOL ($170.6M) and 892K SOL ($125.6M).
March 6: Another 1.1M SOL ($174.7M) transfer, adding to fears of liquidation.
Additionally, well-known analyst Crypto Rover reported whales’ recent purchase of $16M worth of BTC. This indicates that whales might be shifting their Solana holdings to Bitcoin, reflecting a shift in investor sentiment away from Solana, possibly due to its association with recent scams like Libra and Bybit.
2. Trump Tariffs and Crypto Strategic Reserve
Macroeconomic factors have also played a role in why is Solana price dropping. Former U.S. President Donald Trump’s proposed trade tariffs have created uncertainty in the global market. Investors fear that tariffs could lead to higher inflation and reduced economic growth, further dampening the crypto market.
The FTX estate's massive token unlock since March 1 has also added to selling pressure, leading to increased market supply. Additionally, Trump’s crypto strategic reserve announcement on March 2 failed to generate significant buying interest, leaving Solana vulnerable to sharp declines.
Adding to the bearish sentiment, the U.S. Non-Farm Payroll (NFP) data on March 8 triggered another round of market-wide sell-offs, further accelerating Solana’s downturn.
3. Ali Martinez’s Bearish Prediction
Renowned analyst Ali Martinez warned that Solana’s price had broken a crucial $125 support level, which could lead to further declines. Based on historical trends, if this bearish pattern continues, SOL could drop to $60-$70 in the coming weeks.
Visit:- https://www.coingabbar.com/en/crypto-currency-news/why-is-solana-falling-will-sol-recover-or-crash-further
Solana has been facing a severe downturn in recent weeks, triggering concerns among investors and traders. At the time of writing, SOL is trading at $123.47, reflecting a 3.04% intraday decline and a 10.43% drop over the past week. However, the most alarming trend is its massive 40% price drop in the past month, falling from $137.83 to as low as $113.76.
Solana Price
Source: CoinMarketCap
This Solana price crash has left the crypto community wondering: why is Solana crashing today?
Why is Solana Falling? Reasons Behind SOL Crash
Several factors have contributed to the ongoing Solana price drop, including large whale withdrawals, macroeconomic uncertainties, and technical chart patterns indicating further declines.
1. Heavy Solana Withdrawals by Whales
A major factor driving Solana crash news is the massive withdrawals by whales. On March 11, a whale withdrew 195K SOL ($23.2M) from multiple exchanges, including Bybit, OKX, and Gate.io, raising concerns about a large sell-off.
Solana Whale Transfer
Source: X
Whale Alert data also reported suspicious transactions:
March 7: 1,000,000 SOL ($146.9M) moved from Kraken to an unknown wallet.
March 6: Multiple transactions between unknown wallets, including 1.1M SOL ($170.6M) and 892K SOL ($125.6M).
March 6: Another 1.1M SOL ($174.7M) transfer, adding to fears of liquidation.
Additionally, well-known analyst Crypto Rover reported whales’ recent purchase of $16M worth of BTC. This indicates that whales might be shifting their Solana holdings to Bitcoin, reflecting a shift in investor sentiment away from Solana, possibly due to its association with recent scams like Libra and Bybit.
2. Trump Tariffs and Crypto Strategic Reserve
Macroeconomic factors have also played a role in why is Solana price dropping. Former U.S. President Donald Trump’s proposed trade tariffs have created uncertainty in the global market. Investors fear that tariffs could lead to higher inflation and reduced economic growth, further dampening the crypto market.
The FTX estate's massive token unlock since March 1 has also added to selling pressure, leading to increased market supply. Additionally, Trump’s crypto strategic reserve announcement on March 2 failed to generate significant buying interest, leaving Solana vulnerable to sharp declines.
Adding to the bearish sentiment, the U.S. Non-Farm Payroll (NFP) data on March 8 triggered another round of market-wide sell-offs, further accelerating Solana’s downturn.
3. Ali Martinez’s Bearish Prediction
Renowned analyst Ali Martinez warned that Solana’s price had broken a crucial $125 support level, which could lead to further declines. Based on historical trends, if this bearish pattern continues, SOL could drop to $60-$70 in the coming weeks.
Visit:- https://www.coingabbar.com/en/crypto-currency-news/why-is-solana-falling-will-sol-recover-or-crash-further
Confirm Delete
Are you sure, you want to delete the Comment ?