The crypto Solana has dropped to $130

The cryptocurrency Solana has experienced a decline of 33% in the last month and 8% in the last 24 hours. This level represents a critical demand zone.

The crypto Solana has dropped to $130, reaching the lowest levels in the last five months. What are the price forecasts now?

The cryptocurrency has seen a decline of 33% in the last month and 8% in the last 24 hours. This level represents a critical demand zone, increasing caution among investors.

Currently, SOL is priced at $128.14, with a market capitalization reduced to $65.22 billion. Since the beginning of 2025, it has lost almost 29% of its value.

Liquidations and open interest on the rise for the crypto Solana: some estimates on the forecasts

The drop below the support level of $200 has initiated the current bear trend. The technical indicators show mixed signals. The TD Sequential recently indicated a strong buy signal, suggesting a possibility of a rebound in the price.

However, the trading volume has plummeted by 61%, suggesting weak buying pressure. The absence of a “buy the dip” reaction raises doubts about the possibility of a recovery in the short term.

In the daily charts, the red candles dominate, indicating that the profit-taking from the March rally, which had brought SOL close to $180, continues to weigh on the price.

The SOL/BTC pair has also reached the lowest level in the last two years, indicating the weakest phase of this cycle.

The drop in price has hit traders hard. In the last 24 hours, liquidations amounting to $26.55 million have impacted the market, with the majority of losses ($23.45 million) coming from long positions.

This scenario indicates that many investors were expecting a rebound, but they were trapped by the continued decline in price.

The Open Interest of Solana has risen by 1.63%, reaching $3.95 billion. This increase indicates a residual interest in trading SOL, despite the weakening of accumulation.

Last week, in fact, the Open Interest had reached a peak of $5.31 billion when the price of SOL tested $180, but the rapid drop to $4.20 billion erased 20.45% of the gains in just 24 hours.

The impact of memecoin on the Solana network

The liquidity flows represent another challenge for SOL. Since January, over $9.5 billion in USDC have been issued on Solana, but only a portion has entered directly into the SOL token.

A large part of the capital has instead shifted to memecoins, limiting the inflow of liquidity towards the main network token.

Furthermore, investor confidence has been damaged by some scams related to memecoins. A striking case involved the Libra token, promoted by Argentine president Javier Milei, which turned out to be a fraud.

The insiders have withdrawn $107 million from Libra, causing a 94% price drop in a few hours. This event has destroyed approximately $4 billion in value for investors, increasing pessimism towards the Solana ecosystem.

Due to these issues, many capitals are leaving the Solana network. In the month of February alone, about $485 million were moved elsewhere, with the main destination being Ethereum, Arbitrum, and Binance Smart Chain.

This exodus signals a decline in confidence in the network.

The difficulties of Solana are part of a broader context. The entire cryptocurrency market is in a bear phase, with a total capitalization down to $2.71 trillion, a decrease of 4.29% in just one day.

Bitcoin has lost 5%, while Ethereum decreased by 6%. This has contributed to the risk aversion climate, also penalizing Solana.

The White House Crypto Summit on March 7 was supposed to bring optimism to the market. However, the prices of the main cryptocurrencies have been falling since the event, suggesting that the impact was opposite to expectations.

Possibility of Recovery for Solana: Price Forecasts

Despite the difficulties, some elements could provide support to the price of SOL. Historically, this price level has attracted buyers interested in purchasing at a discount, which could offer a support base in the short term.

Furthermore, the consolidation phase of Bitcoin could favor a return of investors to altcoins like Solana. However, this possibility depends on a general improvement in the crypto market.

In the meantime, investors remain cautious, closely watching whether Solana will manage to reverse the trend or continue its descent towards new lows.