Solana Risks Further Drop – Is The SOL ‘Memecoin Fiesta’ Over?
Solana (Sol) recently lost its critical support zone in the controversial Libra (Libra) token launch and collapse. Cryptocurrency has fallen by more than 12% over the past three days, and some analysts show it has the potential to make deeper corrections to monthly lows.
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Libra token crashes Solana’s party
Due to this cycle, the Solana Network has been a discussion in the town member Frenzy, because it has always been the preferred chain of choice for these projects. Cryptocurrencies have also been one of the leading tokens last year, with most altcoins outperforming most Altcoins in 2024.
Since 2025, despite repeated market recovery, Sol has shown strength, continuing to surpass key levels above key levels, rebounding rapidly, even on the latest historically latest high (ATH) a month ago It reached $295.
However, the recent controversial issue of Solana-based token issuance has lowered the price of Sol by a three-day callback.
The Viva La Libertad project was announced on Friday along with the Libra token and was endorsed by Argentina President Javier Milei.
project aim To “encourage Argentina’s economic growth by funding small businesses and startups” and soar to a market cap of $4.5 billion in President X position.
However, this collapsed 94% after the team’s wallet and insiders sold over $100 million worth of Libra on the token’s peak, causing President Milli to be out of reach with the project.
Market sentiment changed after Libra collapsed, some community members Express During the cycle, the exhaustion of many Memecoin scams triggered in the Solana network.
As a result, Saul’s price fell to $190 and hovered within this range until Sunday. With more details on the Libra project, Solana lowered another 7.8% to the $180 support zone, bringing the price to a minimum valuation in two weeks.
Solana loses $180 in support
As Trader Crypto Rand noted, cryptocurrencies briefly recovered to $187 on Monday morning but were rejected by the nearly month-long downtrend resistance line. For investors, there is a “key to support the main $180”.
Crypto analyst Ali Martinez Highlight The solvent remains within its critical range. The key areas of $180 to $190 hold post-election breakout levels, with cryptocurrencies having a large rebound range over the past four months.
Still, after Miley retweeted a post about Libra token on Monday afternoon, Thor was below its key support zone. X Post explains the steps to invest in cryptocurrencies, sending Libra time briefly to 60% after Milei cancels the forwarding.
Since then, Solana has Hover The daily time range is 6.6 between the price range of $175 to $178.
Is the SOL season over?
In Sol’s recent price action, some analysts pointed out its chart on Ethereum (ETH). According to Daan Crypto Trades, Sol/Eth will be “an interesting chart to watch over the next few weeks”.
Traders explain that Saul’s interest reached Trump a month ago member Being pushed out. In a weak market, a series of “scam, carpet and grinding” disrupted the “chain/meme ecosystem”, prompting Solana’s “strongly adjusting to this point.”
Daan believes that “capital (IS) has rotated from SOL to ETH to ETH for some time”, which may make the SOL/ETH trading pair retest the 2021 ATH level of 0.058. This level is “very influential” and is a key bounce point in the fourth quarter 2024.
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Meanwhile, Poppe’s Michael After consideration Sol/Eth’s valuation has peaked after “the huge bearish divergence and starts to fall.” “As a result, “ETH season begins with SOL season”, and the rotation from Solana to Ethereum has begun.
Analysts compared Memecoin Frenzy to 2020’s Defi Surge and concluded that Sol “Memecoin Fiesta has been an internal loop printer for a small group of people, and now everyone knows that now.”
Featured images from Unsplash.com, charts from TradingView.com
