Solana (SOL) pulls back over 12.78%, dropping from $232 to $203 after a strong month-long rally.
Solana’s price drop came as Bitcoin fell below $95K, triggering a market sell-off.
In the last 24 hours, $1.76 billion was liquidated, including $61 million in Solana positions.
pullback today. Following an impressive rally, the leading altcoin slipped below the $210 support zone, with its price falling over 12.78% in just 24 hours, from a high of $232 to an intraday low of $203. This decline coincided with a notable dip in Bitcoin (BTC), which dropped below the $95K zone during earlier Asian trading hours on De 10.
Bitcoin, which recently hit an all-time high of $103.9K, is now facing tough resistance around the $100K level as the market braces for the release of the US Consumer Price Index (CPI) data this Wednesday. The drop in Bitcoin’s price has sparked panic selling across the cryptocurrency market, leading to a broad-based decline in altcoin values. In the last 24 hours, the crypto market saw $1.76 billion in liquidations, with over 584,000 traders closing their positions. Solana alone accounted for $61 million of this figure.
Crypto Liquidation Heatmap (Source: Coinglass)
Despite the sharp downturn, many analysts remain optimistic about the future of Solana, emphasizing that this correction is not the end of the bull run. With the market inching toward 2025, some believe that this could be the beginning of an altcoin season, with the market poised for a potential rebound. On the other hand, the recent market crash could also create a buying opportunity, with new investors entering at lower prices, potentially setting the stage for a future rally.
Solana Price Action and Market Indicators
At the time of writing, Solana’s price has slightly recovered to $216, though it remains well below its previous highs. Despite the price decline, the daily trading volume of Solana has surged by over 179%, indicating increased market activity.
According to the SOL/USDT 4-hour chart, Solana is currently trading in a descending channel, suggesting bearish momentum. SOL’s drop today precedes a growing bearish divergence between its price and the relative strength index (RSI).
Solana (SOL) Price Chart (Source: TradingView )
The price action over the past few weeks has formed higher highs, but the RSI has displayed lower highs, indicating a growing bearish divergence. The rise in SOL’s price to all-time highs also led to overbought conditions on Nov 23 when the RSI hit 77, triggering a correction as buyer exhaustion and profit-taking set in.
Currently, with an RSI of 28, Solana is in the oversold zone, suggesting that buying pressure could trigger a potential rebound. Additionally, Solana’s (SOL) CMF at -0.00 suggests slightly negative money flow, indicating marginal selling pressure but no strong trend.
While the market faces short-term challenges, the ongoing volatility could provide a chance for a fresh influx of buyers. In that case, Solana’s price could back up to the $230 to $250 resistance levels. However, if selling intensifies, SOL’s price may drop toward the $200 support level or even lower to $175.
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