{"id":47602,"date":"2025-02-25T14:32:47","date_gmt":"2025-02-25T14:32:47","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=47602"},"modified":"2025-02-25T14:32:47","modified_gmt":"2025-02-25T14:32:47","slug":"3-reasons-why-the-solana-sol-price-crashed-by-20-weekly","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=47602","title":{"rendered":"3 Reasons Why the Solana (SOL) Price Crashed by 20% Weekly"},"content":{"rendered":"

TL;DR<\/strong><\/p>\n

Solana (SOL) fell below $140 amid a broad crypto correction, whale sell-offs, and other setbacks.<\/p>\n

Despite the drop, the asset\u2019s oversold RSI (15.9) and market optimism signal a possible rebound and buying opportunity.<\/p>\n

<\/a><\/span><\/h2>\n

The Potential Factors<\/h2>\n

Solana (SOL) <\/span>was at the forefront of<\/span> gains at the start of the year, with its price soaring to <\/span>a new<\/span> all-time high of over $285 on January 19.<\/span> This<\/span> happened one day before Donald Trump\u2019s inauguration as America\u2019s 47th President, which supposedly triggered<\/a> <\/span>huge<\/span> excitement across the entire crypto space.\u00a0<\/span><\/p>\n

Since then, though, the asset has been experiencing a downfall. The price has tumbled by 19.5% in the last week, <\/span>currently<\/span> trading at roughly $137. Its market capitalization has collapsed to approximately $67 billion, making SOL the sixth-biggest cryptocurrency.\u00a0<\/span><\/p>\n

<\/a>SOL Price, Source: CoinGecko<\/p>\n

Perhaps the<\/span> most evident reason contributing to the pullback is the severe correction of the crypto sector.<\/span> As<\/span> CryptoPotato<\/span><\/em> reported<\/span><\/a>, <\/span>the past 24 hours have not been kind to Bitcoin (BTC), whose price slipped below $87,000.<\/span> The altcoins suffered even more substantial losses, while the total value of liquidated positions for that timeframe <\/span>equaled<\/span><\/a> more than $1.5 billion.<\/span><\/p>\n

Another factor that may have negatively affected SOL\u2019s performance could be the potential selling pressure triggered by Wintermute. Several X users <\/span>noted<\/span><\/a> that the proprietary trading firm has withdrawn large amounts of Solana from Binance lately.\u00a0<\/span><\/p>\n

The effort comes a few days before a massive token unlock, which <\/span>is <\/span>set<\/span><\/a> to release over 11.2 million SOL into circulation <\/span>on March 1<\/span>. The increased supply could result in a further price slump, assuming demand doesn\u2019t keep pace.\u00a0<\/span><\/p>\n

Last but not least, we will focus on the whales\u2019 activity. According to X user Ali Martinez, 135 large investors (holding more than 10,000 SOL) have <\/span>sold<\/span><\/a> or redistributed their holdings in the last month.<\/span><\/p>\n

As mentioned above, a sudden influx of tokens for sale can overwhelm available demand. Additionally, the whales\u2019 actions could <\/span>be perceived<\/span> as bad news from smaller players who may <\/span>also<\/span> decide to cash out.\u00a0<\/span><\/p>\n

The Bright Side<\/span><\/h2>\n

Despite the significant correction, many market observers remain optimistic that SOL has the potential to return to the green track soon. <\/span>The X user Lucky<\/span> told<\/span><\/a> his over two million followers on X that \u201cthere\u2019s no need to panic.\u201d<\/span>\u00a0<\/span><\/p>\n

They believe the asset could rise \u201cmuch higher\u201d <\/span>in the near future<\/span>, viewing the current price condition as \u201ca fantastic deal.\u201d\u00a0<\/span><\/p>\n

Meanwhile, SOL\u2019s Relative Strength Index (RSI) <\/span>plummeted<\/span><\/a> to a multi-year low of 15.9, which suggests that the token might be oversold and due for a rebound. Conversely, readings above 70 indicate that SOL has entered into overbought territory and could <\/span>be headed<\/span> for correction.<\/span><\/p>\n

The post 3 Reasons Why the Solana (SOL) Price Crashed by 20% Weekly<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

TL;DR Solana (SOL) fell below $140 amid a broad crypto correction, whale sell-offs, and other setbacks. Despite the drop, the asset\u2019s oversold RSI (15.9) and market optimism signal a possible rebound and buying opportunity. The Potential Factors Solana (SOL) was at the forefront of gains at the start of the year, with its price soaring […]<\/p>\n","protected":false},"author":0,"featured_media":47603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-47602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/47602"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47602"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/47602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/47603"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}