Key Insights:
- Solana plunged below $160 amid $1.36 billion in liquidations, highlighting severe selling pressure and fear across the crypto market.
- Broader market weakness, including Bitcoin’s $45 billion sell-off, further dampened sentiment and contributed to Solana’s extended losses.
- Technical indicators suggest potential short-term stabilization near $160, though downside risks persist if selling volume remains high.
Solana continued its steep decline this week as persistent selling pressure dragged prices below key support levels. Over the past 24 hours, SOL dropped another 2%, extending its weekly losses to nearly 10%. The token has now fallen more than 30% in a month, mirroring the broader downturn across the cryptocurrency market.
The price of SOL slipped below the crucial $160 level, touching a low of $145 before stabilizing near $157. This sharp decline followed failed attempts to hold above $190, which led to a wave of forced liquidations. More than $1.35 billion worth of long positions were wiped out in a single day, contributing to an overall $2 billion in crypto liquidations. The rapid sell-off reflected growing investor unease amid tightening regulatory scrutiny and weakening institutional sentiment.
Market-Wide Weakness Adds to Solana’s Struggles
Bitcoin also lost ground, dropping 1.02% in the past day and 8.6% over the week. Long-term holders reportedly sold about 400,000 BTC since October, worth approximately $45 billion, exerting further downward pressure. ETF outflows on November 4 reached $566 million, signaling a reduction in institutional interest. Ethereum slid below $3,500 as selling intensified, pushing the total crypto market lower by 0.6% and extending its weekly losses to 9%.
Market analysts noted that Solana is making repeated attempts to maintain stability around its critical $160 support level. Several technical rejections at this price suggest that buyers are defending the zone aggressively. If the price manages to hold above $160, the next resistance could appear near $175 to $180. However, a break below $150 may expose the asset to further downside toward $135 or even $130.
Early Technical Signs of Stabilization
At press time, Solana traded around $161, showing mild recovery after the recent slump. The Relative Strength Index remained near 35, indicating the token is emerging from oversold conditions. Meanwhile, the MACD indicator hinted at an early bullish crossover, though momentum remains cautious. If buying volume improves, a short-term rebound could emerge.
Despite the current volatility, optimism remains regarding potential market stabilization. Fidelity’s recent amendment of its S-1 filing for a Solana ETF has added a long-term bullish undertone, even as traders brace for continued uncertainty in the short term.
