The ongoing crypto bloodbath, which has resulted in more than $2 billion in forced liquidation, has pushed Solana (SOL) to the edge. The large-cap altcoin, with a fully diluted valuation of about $115 billion and a 24-hour average trading volume of around $15 billion, dumped over 7 percent in the past 24 hours, thus adding on the more than 30 percent drop in the last three weeks.
As of this writing, SOL price traded at about $196, following a forced liquidation of more than $85 million in the last 24 hours, with the majority involving long traders. Consequently, the SOL price has dropped around 33 percent from its all-time high (ATH) to around $293, which was set two weeks ago.
Solana Price Analysis
From a technical analysis standpoint, SOL price has been forming a bullish continuation pattern since last November. Despite the notable capitulation in the past few weeks, SOL price has rebounded from the 50-weekly Moving Average (MA), which coincided with the falling logarithmic trend, which previously acted as a major resistance level.
According to crypto analyst Ali Martinez, SOL price has retested the lower border of a macro-rising channel. As a result, Martinez highlighted that the SOL price must rebound from the support level of around $191 to invalidate a potential selloff towards $138 in the near future.
Bigger Picture
The Solana network has grown to a vibrant web3 ecosystem with top-ranked DeFi platforms, led by Raydium DEX. As of this writing, the Solana network had more than $9.4 billion in total value locked (TVL) and over $11.7 billion in stablecoins market cap.
The Solana network is heavily backed by mainstream retail traders and whale investors, led by fund managers seeking to diversify their crypto portfolios. Furthermore, more than 388M SOL has been staked to secure the Solana network and in return earn passive income.
