Tuesdayโs crypto crash has set the global market capitalization aback by 9.3%, plunging below $3 trillion to $2,998,377,606,377 as of press time. While cryptoโs flagship asset Bitcoin (BTC) dipped to 3-month lows to $87,100 at 10 AM UTC, most major cap altcoins followed the same road with XRP (XRP) and Solana (SOL) prices hit the hardest.
Binance Sell-Off Takes Toll On Solana Price
In Solanaโs case, the major setback is potentially caused by a rapid drop in the Layer-1 chainโs trading volume. Solanaโs decentralized finance (DeFi) trading volume marked new yearly lows of $2.25 billion on February 23, 2025. Paired with a heavy drop in active users on the network, Solana price dipped to the 3-month lows of $132 on Tuesday morning.
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On top of that, the massive 24-hour trading volume of $12,233,107,446 is not all good news for the $69B worth altcoin due to the ongoing multi-billion dollar SOL sell-off by Binance. One of the leading crypto exchanges worldwide has been identified as the selling side of the transaction to Wintermute, a prominent crypto market maker.
The $15.6 million sell-off in a matter of hours aroused speculations by crypto analysts that Solana price could face downward momentum all the way to $100, as pointed out by crypto connoisseur Crypto Beast. Meanwhile, other analysts are factoring in a possible $2.2 billion SOL sell-off in relation to the FTX exchange bankruptcy.
Solana Price Gets Struck By Death Cross
As Solana price lost the grip of $150, a critical support area held since October 18, 2024, a death cross pattern occurred on 1-day charts. This bearish signal on Solana price activates when the 50-day moving average (MA) crosses below the 200-day moving average (MA). Furthermore, the bearish trend is strengthened by negative values in two other key metrics.
As Solana (SOL) price remains slightly below $140, the Bull Bear Power (BBP) indicator flashed -63.86, establishing a convincing crypto bear takeover. Compared to previous Solana price dips, these levels are unprecedented since August, 2024. During that time, the Layer-1 altcoin faced a pullback to $129 before bouncing back to the key support territory of $150 in late September.
On The Flipside
- Solanaโs trading volume on Derivatives markets showcased a tremendous growth of 182% over the past 24 hours, picking up $25.35 billion net volume.
- However, the bursting speculative market interest on Solanaโs price has piled up to $101.53 million in leveraged long Solana positions in 24 hours.
Why This Matters
Solanaโs native crypto currency SOL is a TOP 5 altcoin, which boasted over $100 billion in global market capitalization for the most part of the year.
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