Solana (SOL) Price Drops to 9-Month Lows as Market Sentiment Turns Negative

The popular cryptocurrency fell to levels not seen since last September as broader market sentiment turned negative.

Solana price dropped sharply in recent trading sessions, falling to lows last seen in September as broader market sentiment soured.

The popular cryptocurrency slid to levels below $120.35 on Monday. This marked a fifth straight day of losses for the token since March 6th.

The cryptocurrency exchange Bitstamp data shows SOL slid 9.11% in 24 hours and over 23% for the week. This decline came as the entire cryptocurrency market faced weakness.

Bitcoin price also slipped during this period. The leading cryptocurrency fell below $80,000, touching lows of $76,000 on Tuesday amid growing economic concerns.

Death Cross

Technical analysts noted a concerning pattern forming on Solana’s price charts- the 50-day simple moving average (SMA) was approaching a crossover below the 200-day SMA.

This pattern, known as a “death cross,” typically signaled bearish momentum. The 50-day SMA was currently at $188.71 while the 200-day SMA was at $184.03.

When shorter-term averages crossed below longer-term ones, it often signaled weakening price strength. However, historical data showed mixed results following such patterns.

The last time Solana experienced a death cross was in September 2024. Interestingly, that pattern marked a bottom before prices began to recover.

Within two months after that previous death cross, SOL reached highs of $264. This happened after the formation of a “golden cross,” the opposite pattern where shorter averages crossed above longer ones.

Market observers were watching key support levels should SOL continue to decline. Important price zones included $109 and $88, which could attract buyers if reached.

Whale Movements

Despite the negative price action, on-chain data revealed interesting developments. A large holder, commonly called a “whale,” made major moves during the dip.

According to data from Lookonchain, this whale withdrew 195,000 SOL from exchanges including Bybit, OKX, and Gateio. This accumulation represents approximately $23.2 million worth of tokens.

Many analysts interpreted large withdrawals from exchanges as bullish signals. When investors move cryptocurrency off exchanges, it often indicates an intention to hold rather than sell.

Adding to this potential positive signal, Cumberland DRW staked 48,182 SOL. This staking activity, worth about $5.72 million, removes tokens from circulation.

The combination of whale accumulation and increased staking has generated optimism among some traders. These actions suggest confidence in Solana’s long-term prospects despite short-term weakness.

Several analysts have shared positive outlooks for SOL. One trader identified as “Coinvo” suggested Solana appears to be repeating its 2021 pattern, which preceded a major bull run.

Another market commentator known as “Lucky” identified a strong demand zone between $110-$127. This trader suggested even a small positive market movement could push SOL above $150.

The current market weakness extends beyond cryptocurrencies. Traditional markets have also faced pressure as Federal Reserve rate cut expectations diminish.

New tariff announcements from the Trump administration have increased recession fears. Some estimates put U.S. recession probability at 40%, creating headwinds for risk assets.

U.S. equity markets showed weakness as investors sought safer alternatives. This broader risk-off sentiment has affected cryptocurrencies, which often correlate with other risk assets.

As of the latest data, SOL was trading at $123, showing modest recovery from recent lows. The 24-hour trading range saw a bottom at $113.19 and a peak at $131.24.

Traders will be watching closely to see if Solana’s price action follows its previous pattern from September 2024. That earlier death cross actually preceded a strong rally.

Whether the current technical pattern leads to further decline or marks a turning point remains uncertain. The actions of large holders suggest that some smart money sees the current dip as a buying opportunity.