Solana (SOL) has experienced a significant drop in price since February 1st, when Bitcoin fell below $100,000. The cryptocurrency’s value has dropped below the critical threshold of $200, triggering a massive liquidation of $367 million from spot markets in just three days. This event signifies increased mistrust among traders and sellers dominating trading.
The long/short ratio has collapsed to 0.93, indicating that short positions far exceed long positions, reinforcing selling pressure on SOL. Technical indicators signal sustained bearish pressure, with the Chaikin Money Flow (CMF) indicator approaching the negative zone, suggesting a gradual decrease in demand.
If this trend continues, Solana could reach new support levels at $187.71, which would determine the magnitude of the upcoming correction. However, a potential rebound in Bitcoin and Solana’s price may reverse this bearish trend, pushing SOL towards resistance at $229.03. The market’s evolution will largely depend on investor sentiment and Bitcoin’s fluctuations.
The vulnerability of altcoins to Bitcoin’s fluctuations is evident, with the current trajectory reflecting a bearish sentiment. A durable rebound seems compromised without clear bullish signals, prompting investors to exercise caution. Nevertheless, a trend reversal cannot be ruled out, and Solana may regain upward momentum if demand surges or a market-wide recovery occurs.
Source: https://www.cointribune.com/en/solana-crashes-with-bitcoin-how-low-can-it-go