Solana price experienced a sharp decline, reaching a multi-month low of $126.15. This represented a 57% drop from its highest value this year. However, the cryptocurrency rebounded to $145 following a major purchase by SOL whales.

Solana Price Stabilizes After Crash – Is a Rally to $180 Possible?

Solana price saw a major decline, falling from its yearly peak of $295 to $126.15. This drop marked its lowest level since September 6. The decline also led to a breakdown below the $170 support level.

Meanwhile, a Solana whale purchased $14 million worth of SOL, withdrawing it from Binance and staking the tokens. The accumulation occurred before a $1.75 billion token unlock, a typically bearish event. The purchase helped ease sell pressure and contributed to the slight  SOL price recovery.

Despite the rebound, Solana price remains below key resistance levels. If the bullish momentum continues, traders target the $170 level as a short-term target. A breakout beyond this level could push SOL toward the $180 mark.

Meanwhile, according to a recent report, CME Group announced plans to introduce Solana (SOL) futures on March 17, subject to regulatory approval. This move positions Solana alongside Bitcoin and Ethereum as one of the few cryptocurrencies with futures trading on the platform. Market analysts suggest that the launch could strengthen the case for a potential Solana ETF in the future.

Solana’s Total Value Locked Declines by Nearly 50%

Solana’s total value locked (TVL) has dropped significantly in recent weeks. The TVL, which peaked at $12.19 billion, has now declined to $6.94 billion. The drop reflects lower investor confidence and reduced capital inflow into Solana-based decentralized finance (DeFi) projects.

The decline in TVL has been linked to the crash of top Solana-based meme coins. The market cap of Solana meme coins fell from $25 billion in January to $8.9 billion. This shift in capital has negatively affected the Solana network’s liquidity and overall market position.

While TVL remains under pressure, some Solana-based meme coins have started to recover. The overall DeFi activity on the network will be a key factor in determining the future movement of Solana price.

Key Resistance Levels to Watch

Solana price is approaching a critical resistance zone between $147.09 and $166.42. This area represents a fair value gap in the market. If SOL breaks above this range, it could signal a stronger recovery toward the $180 resistance level.

Supporting the bullish move by SOL whales, technical indicators suggest increasing momentum in favor of buyers. The Parabolic SAR (Stop and Reverse) indicator, displayed as dots above and below the price action, has shifted below the recent candles. This shift indicates a potential reversal from the previous downtrend. As long as the dots remain below the price, it suggests that buyers are in control, and the uptrend may persist.

Similarly, the Moving Average Convergence Divergence (MACD) indicator and its histogram reinforce this bullish outlook by SOL whales. The MACD line has crossed above the signal line, which is a classic bullish crossover indicating strengthening upward momentum. 

Additionally, the histogram bars have turned positive and are expanding, confirming buying pressure. If the momentum sustains, Solana price might break key resistance levels toward $180. 

More so, according to analysis, SOL price has shown signs of stabilization after crashing 40% and reaching extremely oversold levels. Historically, such deep RSI drops have often preceded price reversals, hinting that Solana price could regain upward momentum.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.