Solana 💀

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Solana 💀

Solana 💀

  • Solana’ recovery is under pressure from large-scale sell-offs and weak sentiment.
  • Beyond technical, Solana found itself embroiled in controversy.

Solana [SOL] has plunged 36% this month, ranking as the worst-performing top asset. A 2% uptick in trading volume, coupled with an oversold RSI and a bullish MACD crossover, signals potential dip buying around $120. 🤷‍♀️

However, with risk appetite still low, can SOL bulls leverage technicals alone to stage a recovery? 🤔

Beyond the charts: Key factors at play

Pumpfun continues to fuel selling pressure on Solana, recently transferring 196,370 SOL worth $25.3 million to Kraken. 💀💀💀

In total, it has deposited 2,629,656 SOL worth $511 million at $194 and offloaded 264,373 SOL for $41.64 million USDC at $158, contributing to the ongoing downturn. 🤑💸

With increasing sell-side liquidity in a risk-off market, a rebound looks uncertain. Meanwhile, Solana’s DEX volume and TVL have slipped back to pre-election levels, signaling weakening network activity. 📉

Historically, Solana’s recovery phases have been marked by double-digit growth in TVL and DEX volume, often signaling a market bottom.

However, on the 15th of March, its DEX volume dropped below $1 billion, raising concerns about a potential trend reversal.

Unless traders step in with strong buy-side momentum, further downside remains likely. Adding to the uncertainty, Solana now faces backlash over a controversial advertisement on X (formerly Twitter).

The ad, which amassed 1.2 million views, was met with overwhelming negativity, forcing Solana to delete it. 🙈 However, the damage was done, impacting market sentiment.

Compounding bearish signals, Weighted Sentiment has flipped negative, reinforcing the lack of bullish confirmation and suggesting investors remain cautious about a potential rebound.

Assessing Solana’s next move

Solana’s price action highlights a persistent supply-demand imbalance. While Bitcoin consolidates, Solana has yet to see strong capital inflows from strategic investors.

Despite a 30% monthly decline, discounted prices have not triggered strong accumulation. The SOL/BTC pair continues to print lower lows, recently plunging to a two-year low, signaling weakening relative strength.

With large-scale sell-offs and bearish sentiment dominating

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2025-03-18 20:10