Solana (SOL) has faced significant price declines recently, falling below the $100 mark and reaching a 14-month low. 

This drop is attributed to broader market bearishness, largely driven by ongoing trade tensions and fears of a financial crisis, often likened to the 1987 “Black Monday.” Despite these challenges, there is potential for SOL to stabilize and recover in the near future.

Solana Investors Stand Strong

The number of active addresses on the Solana network has recently hit a 6-month low, with around 4.44 million addresses engaging on the platform. While the decline from January’s peak of 9 million addresses might seem concerning, it also indicates that investors are likely waiting for a strong recovery before being more active on the network. 

Despite the price downturn, Solana’s loyal investor base continues to hold their positions, signaling potential support that could prevent further price declines. Solana’s investors remain hopeful for a rebound, particularly given the network’s history of bouncing back after downturns. 

Looking at technical indicators, the Relative Strength Index (RSI) for Solana is currently sitting in the oversold zone, below the critical 30.0 mark. This suggests that the bearish momentum may be nearing its saturation point, with the potential for a reversal in the near future. Historically, when SOL has dipped into the oversold region, the price has rebounded.

The RSI reading suggests that the market may be poised for a short-term recovery if the broader market conditions stabilize. While the global financial climate remains uncertain, the RSI signals that Solana could be on the brink of a price rebound, provided the bearish forces start to subside.

SOL Price May Recover Soon

Solana’s price has dropped 20.8% during the intra-day trading session, reaching $97. The price fall below $100 marks a new low for the asset, driven by a surge in bearish sentiment across the market. As a result, many investors are watching closely to see if Solana can reclaim its previous support levels.

Despite the recent declines, Solana’s recovery potential remains strong. If the price manages to break above the $100 mark and hold it as support, the positive momentum could return. Investors are likely to capitalize on the current 14-month low, injecting new capital into the network and helping to stabilize the price.

However, if the broader market conditions fail to improve, Solana’s price may continue to struggle. A drop below the $90 support level would invalidate the bullish outlook and extend losses. As a result, SOL may face further downward pressure, especially if negative market trends persist.

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In a year marked by market turbulence and mounting geopolitical tensions, privacy coins have emerged as the best-performing sector in the cryptocurrency space. 

Analysts and privacy advocates argue this is no coincidence. In fact, some believe the outperformance signals the early stages of a larger shift in global financial dynamics.

Why Privacy Coins Are the Top Performers in a Fear-Driven Market

According to the latest data from Artemis, privacy-focused cryptocurrencies have dropped 12.9% since the start of the year, the smallest drop among all crypto sectors.

In comparison, Bitcoin (BTC) has seen a 16.8% decline. In addition, Ethereum (ETH) has also depreciated 52.8% year-to-date (YTD).

BeInCrypto data showed that over the past month, top privacy coins have fared well in comparison to BTC. Monero (XMR) has dipped 8.1%. Notably, Zcash (ZEC) has seen a modest rise of 9.1%. Nonetheless, with Bitcoin, the losses are slightly higher. Over the past month, the largest cryptocurrency has shed 9.8% of its gains.

In fact, privacy coins have also outperformed the broader cryptocurrency market in the past 24 hours. The privacy sector has seen a 7.0% decline, while the global crypto market has dropped 8.3%.

Patrick Scott, Head of Growth at DefiLlama, attributed this outperformance to broader macroeconomic shifts in a recent post on X (formerly Twitter).

“Privacy coins were the best-performing crypto sector during the crash. This isn’t about hype. It’s macro,” he wrote.

Scott pointed out that countries are becoming more economically isolated due to increasing tariffs and potential capital controls. He argued that privacy coins’ ability to resist censorship and operate privately would make them more important, shifting from being just a “narrative” to a practical necessity.

“The outperformance isn’t random. It’s an early reaction to a shifting global regime and the breakdown of the post-WW2 international order,” Scott remarked.

Meanwhile, many industry leaders echo a similar sentiment. Vikrant Sharma, Founder and CEO of Cake Investments, expressed strong support for privacy-focused solutions. 

“I am a maxi.. a privacy maxi. That’s why I support privacy coins and tools like XMR, Zano, silent payments, and pay join for BTC, LTC-MWB, and yes, I think Zcash is fine too,” he posted.

Others, like Mike Adams, the founder of Brighteon, also stressed the importance of privacy in transactions.

“Use privacy crypto, folks. Monero, Zano, Firo… not BTC, which is completely transparency and has zero privacy,” stated Adams.

In addition to these factors, the demand for privacy coins is being fueled by their growing use in illegal activities. A recent report from BeInCrypto highlighted the dominance of privacy coins in illicit transactions, where they are preferred for their ability to conceal transaction details.

While Bitcoin and stablecoins are still used in such activities, privacy coins like Monero are gaining traction due to their superior anonymity features.