Solana (SOL) Price on the Brink: Will It Plunge Below Critical $160 Support?
According to recent market data, Solana (SOL) continues to face strong selling pressure, pushing its price lower. Since its peak price above $250, Solana has experienced substantial price devaluation to its current value. The market exhibits high volatility, suggesting prices will likely keep dropping in the near future.
The forthcoming release of 11.2 million SOL through FTX’s bankruptcy will intensify market selling activity. In March, the supply volume of $1.6 billion SOL will become accessible, raising questions about the token’s stability. Market pricing may decline further during the upcoming weeks because demand fails to match this additional supply.
Market investors display persistent doubt because of independent crypto frauds like $LIBRA, $TRUMP and $MELANIA which were exposed as scams. Recent incidents have caused investors to maintain caution during their trading activities. The market demonstrates its unsettled emotions through lower buying and selling frequency and growing precautionary measures from traders.
Solana Price Faces Key Support Level Test
Solana is currently trading at around $171, reflecting a modest gain of 1.61% in the past 24 hours. However, the cryptocurrency remains downward, indicating that sellers maintain control. Further declines could follow if the price fails to hold key support levels.
The recent price action indicates that SOL is testing the lower Fibonacci retracement zones. A successful hold at $160 support could push the price toward the $180–$185 range. However, a break below this level could accelerate losses toward $150–$155, potentially dropping to the $125–$130 range if selling pressure persists.
The Relative Strength Index (RSI) is near oversold levels, currently at 32.80. If buying pressure increases, a rebound could occur, but market conditions remain uncertain. The indicator suggests SOL might experience a short-term bounce before any upward move.
The MACD remains in bearish territory, with the histogram showing negative values. The MACD and signal lines continue trending downward, indicating sellers are still in control. A bullish crossover would be necessary to confirm a reversal, but no such signal has appeared yet.
The Aroon indicator also highlights a strong downtrend, with the Aroon Down at 85.71%. Meanwhile, the Aroon Up is at 28.57%, showing that downward momentum remains dominant. Until this trend weakens, Solana’s price could remain under pressure.
Solana Funding Rate Signals Market Uncertainty
The volume-weighted funding rate for Solana has fluctuated between positive and negative territory in recent months. The December funding rates indicated optimism, which seems to have given way to increasing uncertainty throughout recent time periods. The current funding rate shows almost no movement, neither in a positive nor a negative direction, indicating traders remain unsure about future market movements.
The continuous appearance of negative funding rates indicates that short positions dominate SOL, generating more downward pressure on its price. The funding rates plummeted in mid-January, followed by early February, just as SOL prices decreased, highlighting a substantial bearish influence. When funding rates stay stable in positive numbers, it suggests traders are growing more optimistic about SOL.
The decrease in trading activity has reached 40% during the last 24 hours, indicating dual market participation. Market price could experience additional depreciation when trading volume remains low, along with negative funding rates. Positive funding coupled with rising trading volume has the potential to trigger an opposing market trend.
Short Liquidations Rise as Price Moves Up
Solana has experienced significant liquidation activity, with both long and short positions affected by market fluctuations. Coinglass data indicates that long positions such as SOL have faced higher levels of liquidation throughout price correction periods. Price movements in SOL’s market are causing numerous traders to be surprised by SOL’s price sharpness.
The price made targeted increases, which led to a large number of short positions being liquidated. The traders speculating a price decrease must close their positions ahead of schedule, possibly because current market conditions are not in their favor. Major liquidations cause market volatility to rise because they create unpredictable price fluctuations.
When market trading volume increases while the number of traders exiting their long positions falls, this indicates new potential market interest. The probability of an opposing trend might form when buying pressure approaches vital support points. Persistent market liquidations will probably drive reduced asset values, which would amplify present price drops.
Conclusion
Solana remains under pressure as technical indicators point to a continued bearish trend. With key support levels being tested, traders watch for potential reversal signs. If SOL breaks below $160, a drop to the $150–$155 range becomes likely.
The upcoming token unlocks and ongoing liquidation activity adds further uncertainty to the market. Investors should monitor funding rates, RSI levels, and MACD signals for potential trend shifts. SOL needs to reclaim resistance levels above $200 for a sustained recovery and to regain market confidence.
FAQs
What is causing Solana’s price decline?
Solana’s price decline is driven by technical weakness, upcoming token unlocks, and bearish sentiment in the broader crypto market.
What key levels should traders watch?
Traders should monitor the $160 support level and the $180–$185 resistance range. A break below $160 could lead to further losses.
How do liquidation events impact Solana’s price?
Liquidation events create volatility as forced selling or buying can accelerate price movements. High liquidation levels can trigger rapid price swings.
Is Solana oversold?
The RSI indicates that Solana is near the oversold territory, suggesting a possible short-term bounce if buying pressure increases.
What needs to happen for Solana to recover?
Solana must reclaim resistance above $200, and show increased trading volume to confirm a bullish reversal.
Glossary
Support Level: A price level where buying interest is strong enough to prevent further declines.
Resistance Level: A price level where selling interest is strong enough to prevent further gains.
MACD (Moving Average Convergence Divergence): A trend-following indicator that shows momentum shifts.
RSI (Relative Strength Index): A momentum indicator that identifies overbought or oversold conditions.
Funding Rate: The cost of holding leveraged positions in perpetual futures markets.
Liquidation: The forced closure of a trading position due to insufficient margin.
Reference
CoinMarketCap
Coinglass
TradingView
Metaplanet Expands Bitcoin Holdings to 2,100 BTC With $6.6M Acquisition
Metaplanet has announced that its total Bitcoin holdings have reached 2,100 BTC, now worth $196 million.
The firm revealed it recently bought an additional 68.59 BTC for $6.6 million at an average price of $96,335.
0.01% of Total Bitcoin Supply
In a February 20 X post, the company highlighted that its BTC reserves now make up “0.01% of total Bitcoin supply.”
The Japanese investment firm has been rapidly increasing its Bitcoin holdings as part of its treasury operations. According to its “Bitcoin Plan,” shared on January 28, Metaplanet aims to reach 10,000 BTC by the end of 2025 and 21,000 BTC by the end of 2026.
The outfit has significantly increased its purchases of the number one cryptocurrency since mid-2024 when it started using it as a way to protect against inflation.
This latest acquisition comes shortly after a previous one earlier this week, where the firm bought 269.43 BTC worth $25.6 million, bringing its total holdings to 2,031 BTC. Before that, Metaplanet had made several other purchases, including its largest one to date in December 2024, when it obtained nearly 620 BTC worth $60.6 million.
CEO Simon Gerovich has said that adopting the Bitcoin Standard has been a game-changer, helping establish Metaplanet as Tokyo’s top BTC-focused company. Over the past year, its stock price has surged by more than 4,000%. Additionally, the firm is set to be included in the MSCI Japan Index on February 28, a move expected to attract more investors.
Capital Market Activities
Metaplanet has been growing its reserves through its Bitcoin Treasury Operations, which officially became a business line on December 18, 2024.
The company has been funding these purchases using capital market activities and its revenue. In line with this, its Board of Directors has approved several financial moves.
On January 28, 2025, it issued 21 million stock acquisition rights to EVO FUND in five tranches with an adjustable exercise price. On February 10, it also issued zero-coupon bonds worth 4 billion yen to EVO FUND, with the money set aside to buy Bitcoin.
By February 13, Metaplanet had received the full 4 billion yen and adjusted its spending to speed up BTC acquisitions. On February 19, it redeemed 2 billion yen of these bonds early, using money from EVO FUND’s exercise of stock acquisition rights.
Between February 18 and 19, just over 11% of the 13th Series of stock acquisition rights were exercised, raising 3.02 billion yen and contributing 2.38% toward Metaplanet’s “21 Million Plan.”
The post Metaplanet Expands Bitcoin Holdings to 2,100 BTC with $6.6M Acquisition appeared first on CryptoPotato.
Are XRP and DOGE Preparing for 25% Price Moves?
TL:DR
The popular crypto analyst Ali Martinez outlined possible positive scenarios for DOGE and XRP, which could send both assets up by around 25%.
However, the landscape around Ripple’s cross-border token is somewhat worrisome, according to another indicator.
#Dogecoin $DOGE could be on the verge of a 25% move as it nears a breakout from this symmetrical triangle! pic.twitter.com/Vf5OgIgRBU
— Ali (@ali_charts) February 20, 2025
In terms of the world’s largest meme coin, Martinez noted that it nears a breakout from a symmetrical triangle. The asset has been stuck within it ever since the early February crash when the entire market bled out in hours. DOGE’s price tumbled from over $0.3 to a multi-month low of $0.22.
In the following two and a half weeks, Dogecoin failed to break above it as it was stopped at the upper boundary at $0.28, and then the bulls defended the lower one at $0.244.
With its price currently sitting at around $0.255, a 25% move to the upside will send it to over $0.3.
The landscape around XPR is similar, but the triangle is slightly different – it’s an ascending one. In case the third-largest cryptocurrency manages to break above it, its price could experience a 26% surge, Martinez said, which would mean a price tag of roughly $3.4.
Data from CoinGecko shows that this is the current all-time high, which XRP tested in early January but failed to breach. Ripple’s token certainly has some bullish sentiment going its way, mostly related to ETFs. Brazil is set to launch its first spot one tracking the asset’s performance, while several US-based applications have been officially recognized by the SEC.
Nevertheless, Martinez also warned that another technical indicator suggests that XRP could be headed for a correction. The TD Sequential Indicator, which shows the market’s exhaustion in either direction, flashed a sell signal on the 3-hour chart after the asset’s recent rally.
$XRP could be gearing up for a pullback, as the TD Sequential indicator flashes a sell signal on the 3-hour chart after the recent 11% rebound! pic.twitter.com/k8SetFIQ8F
— Ali (@ali_charts) February 20, 2025
The post Are XRP and DOGE Preparing for 25% Price Moves? appeared first on CryptoPotato.
Analysts have provided various forecasts for Bitcoin's performance over the next 90 days:
As of February 20, 2025, Bitcoin $BTC is trading at approximately $95,811.
Short-Term Price Predictions
Analysts have provided various forecasts for Bitcoin's performance over the next 90 days:
CoinCodex anticipates that Bitcoin's price could range between $105,997 and $111,313 over the next week, suggesting a potential increase of up to 5.01% by March 3, 2025.
30 Rates projects that Bitcoin could reach $108,663 by April 2025, representing a 13.7% increase from the current price.
NewsBTC reports that market expert Timothy Peterson predicts Bitcoin could reach $100,000 within the next 90 days, considering this projection "entirely reasonable."
Factors Influencing Bitcoin's Price
Several elements could impact Bitcoin's price trajectory:
Market Sentiment: Investor confidence and macroeconomic factors play crucial roles in Bitcoin's valuation.
Regulatory Developments: Changes in cryptocurrency regulations can significantly influence market dynamics.
Technological Advancements: Upgrades to the Bitcoin network or broader blockchain technology can affect its adoption and price.
Conclusion
While short-term forecasts suggest potential growth for Bitcoin, it's essential to approach these predictions with caution due to the inherent volatility of the cryptocurrency market. Investors should conduct thorough research and consider their risk tolerance before engaging with Bitcoin.
$BTC
#BTC #Write2Earn