Solana (SOL) recently lost its key support zone amid the controversial Libra (LIBRA) token launch and crash. The cryptocurrency has dropped over 12% in the last three days and some analysts suggest it risks a deeper correction to monthly lows.<\/p>\n
The Solana network has been the talk of the town this cycle due to the memecoin<\/a> frenzy, as it has been the go-to chain for these projects. The cryptocurrency has also been one of the leading tokens over the last year, outperforming most altcoins in 2024.<\/p>\n Since 2025 started, SOL has shown strength despite the repeated market retraces, holding above key levels, quickly bouncing back, and even hitting its latest all-time high (ATH) of $295 nearly a month ago.<\/p>\n Nonetheless, the most recent controversial launch of a Solana-based token has sent SOL\u2019s price into a three-day pullback.<\/p>\n On Friday, the Viva La Libertad project was announced alongside the Libra token, receiving the endorsement of Argentina\u2019s President Javier Milei.<\/p>\n The project aimed<\/a> to \u201cencourage Argentina\u2019s economic growth by funding small businesses and startups\u201d and surged to a $4.5 billion market capitalization following the president\u2019s X post.<\/p>\n However, it crashed 94% after the team wallets and insiders sold over $100 million worth of LIBRA at the token\u2019s peak, resulting in President Milei\u2019s distancing from the project.<\/p>\n After the Libra crash, market sentiment shifted, with some community members expressing<\/a> exhaustion from the numerous memecoin scams launched in the Solana network during the cycle.<\/p>\n As a result, SOL\u2019s price dropped to $190 and hovered within this range until Sunday. As more details of the Libra project came out, Solana dropped another 7.8% to the $180 support zone, sending the price to its lowest valuation in two weeks.<\/p>\n On Monday morning, the cryptocurrency briefly recovered to the $187 level but was rejected from the nearly one-month downtrend resistance line, as trader Crypto Rand noted. To the investor, there is a \u201cKey squeeze over the main $180 support.\u201d<\/p>\n Crypto analyst Ali Martinez highlighted<\/a> that Solana remained within its key range. The $180 to $190 crucial zone holds the post-election breakout level and has been a significant bounce range for the cryptocurrency over the past four months.<\/p>\n Nonetheless, SOL fell below its key support zone after President Milei retweeted a post about the Libra token on Monday afternoon. The X post explained the steps to invest in the cryptocurrency, briefly sending LIBRA 60% up before retracing 42% after Milei undid his retweet.<\/p>\n Since then, Solana has hovered<\/a> between the $175 to $178 price range, a 6.6 retrace in the daily timeframe.<\/p>\n Is The SOL Season Over?<\/p>\n Amid SOL\u2019s recent price action, some analysts have pointed out its chart against Ethereum (ETH). According to Daan Crypto Trades, SOL\/ETH will be \u201can interesting chart to watch for the next few weeks.\u201d<\/p>\n The trader explained that SOL interest peaked a month ago when the TRUMP memecoin<\/a> was launched. The series of \u201cscams, rugs, and grifts\u201d during the weak market has destroyed the \u201con-chain\/meme ecosystem,\u201d which had fueled Solana\u2019s \u201cstrong tun-up to that point.\u201d<\/p>\n Daan argues that \u201ccapital [is] rotating from SOL to ETH for the first in a while,\u201d which could see the SOL\/ETH trading pair retesting the 2021 ATH level at 0.058. This level has been \u201cpretty influential this cycle\u201d and was a key bounce point in Q4 2024.<\/p>\nSolana Loses $180 Support<\/h2>\n