One day after the crypto community embraced a solid bounce-back rally with top altcoins leading the race, the broader markets fell into a bull trap. In a concise definition, a bull trap takes place when crypto investors are buying in, expecting the altcoin prices to rise.
Sponsored
To illustrate, the fastest Layer-1 chain Solanaโs native SOL token incurred massive losses in 24 hours, sliding down by 20% to trade below two key support levels. This happened after tapping a new 7-day high yesterday, following the news of Solanaโs (SOL) inclusion in the U.S. Federal Reserve.
Solanaโs Price Crunch: Mass Sell-Offs At Blame?
As if that wasnโt enough, large money trackers have spotted numerous crypto entities initiating multi-million Solana (SOL) token sell-offs. For one, FTX & Alameda estateโs accounts are constantly unstaking the altcoin, typically affecting Solanaโs short-term (SOL) price movements.
This time, the fallen FTX exchangeโs estate deposited another 24.79 SOL tokens, or $3.38M, to Binance. On-chain moves like this usually hint at large players expecting a bigger market dump, especially if the previous bull run gains are wiped out easily due to the bull trap. In total, FTX & Alameda related accounts have sold off $431 million to cover bankruptcy proceedings and reimburse victims.
The sell-off outlook looks even dimmer for Solanaโs (SOL) price in another case by crypto whale tracker LookOnChain, where a veteran crypto investor got rid of 79,530 SOL tokens a few hours ago. Previously, this large crypto investor made more than $27 million in profit by staking Solana (SOL) tokens on November 8, 2023, at the price of $43.
Solana Faces Setbacks Despite Reserve Inclusion
Currently residing just above the $135 support area, Solanaโs (SOL) price continues to be driven by the bears. Judging by the negative Chaikin Money Flow (CMF) index on the daily charts, the predominantly bearish stance is here to stay for the short-term.
After consecutively losing two key support areas of $145 and $155, Solanaโs (SOL) price could have a hard time consolidating at $135, having in mind that the Bull Bear Power (BBP) indicates a convincing bear control at -32.35.
However, the bearish thesis could take a different turn if Solana (SOL) price manages to close the day above $125. This price range serves as a pre-tested lower boundary support level, which already came in handy on February 28, 2025, helping the altcoin briefly bounce back to $178.
On The Flipside
- Todayโs 21% Solana crash has wiped out $49 million in long SOL positions on Derivatives markets, stipulating that crypto traders were caught unsuspecting of the quick price rollback.
- Solanaโs bearish price trajectory can be linked to Donald Trump administrationโs decision to pull aid from Ukraine, causing uncertainty for one of the altcoins widely used in war donations.
Why This Matters
Geopolitical tensions and overall market sentiment tend to drastically shift market dynamics, as most of the large-cap crypto currencies are on the brink of unprecedented legislation.
Discover DailyCoinโs trending crypto stories:
Market Crash Bets Surge as Stocks and Crypto Tumble on Recession Fears
Pectra Upgrade: SHIB, BONE To Be Used For Ethereum Gas Fees?
