Why Is Solana Crashing: Will SOL Recover After 40% Monthly Drop?

Why Is Solana Crashing: What Behind 40% Price Drop, Will SOL Recover?

Solana has been facing a severe downturn in recent weeks, triggering concerns among investors and traders. At the time of writing, SOL is trading at $123.47, reflecting a 3.04% intraday decline and a 10.43% drop over the past week. However, the most alarming trend is its massive 40% price drop in the past month, falling from $137.83 to as low as $113.76. 

Source: CoinMarketCap

This Solana price crash has left the crypto community wondering: why is Solana crashing today?

Why is Solana Falling? Reasons Behind SOL Crash

Several factors have contributed to the ongoing Solana price drop, including large whale withdrawals, macroeconomic uncertainties, and technical chart patterns indicating further declines.

A major factor driving Solana crash news is the massive withdrawals by whales. On March 11, a whale withdrew 195K SOL ($23.2M) from multiple exchanges, including Bybit, OKX, and Gate.io, raising concerns about a large sell-off.

Source: X

Whale Alert data also reported suspicious transactions:

• March 7: 1,000,000 SOL ($146.9M) moved from Kraken to an unknown wallet.

• March 6: Multiple transactions between unknown wallets, including 1.1M SOL ($170.6M) and 892K SOL ($125.6M).

• March 6: Another 1.1M SOL ($174.7M) transfer, adding to fears of liquidation.

Additionally, well-known analyst Crypto Rover reported whales’ recent purchase of $16M worth of BTC. This indicates that whales might be shifting their Solana holdings to Bitcoin, reflecting a shift in investor sentiment away from Solana, possibly due to its association with recent scams like Libra and Bybit.

Macroeconomic factors have also played a role in why is Solana price dropping. Former U.S. President Donald Trump’s proposed trade tariffs have created uncertainty in the global market. Investors fear that tariffs could lead to higher inflation and reduced economic growth, further dampening the crypto market.

The FTX estate's massive token unlock since March 1 has also added to selling pressure, leading to increased market supply. Additionally, Trump’s crypto strategic reserve announcement on March 2 failed to generate significant buying interest, leaving Solana vulnerable to sharp declines.

Adding to the bearish sentiment, the U.S. Non-Farm Payroll (NFP) data on March 8 triggered another round of market-wide sell-offs, further accelerating Solana’s downturn.

Renowned analyst Ali Martinez warned that Solana’s price had broken a crucial $125 support level, which could lead to further declines. Based on historical trends, if this bearish pattern continues, SOL could drop to $60-$70 in the coming weeks. 

Source: X

The next support levels are at $116, $100, and $80, with a potential recovery only if the price moves above $150.

Solana Price Prediction – Will Solana Recover?

Polymarket Prediction: Will Solana reach $150 by March 14?

Solana’s price faces strong bearish pressure, making a climb to $150 difficult. According to Polymarket, there’s only an 8% chance of Solana surpassing $150 by March 14, with 92% believing it’s unlikely. Current market conditions indicate further downside risk.

Source: Polymarket

Technical analysis from Coin Gabbar identifies key resistance levels at $180 and $260. Recently, Solana broke below crucial support, confirming bearish momentum. Candlestick patterns reflect strong selling pressure, with the price struggling to hold support and currently hovering around $123. If selling continues, the next support could be near the psychological $100 level.

Source: TradingView

For recovery, Solana must reclaim $140, potentially triggering a relief rally toward $160-$180. Volume and momentum indicators should be monitored for signs of a trend reversal. Until a strong bullish catalyst emerges, bearish sentiment dominates, and further declines remain possible.

For now, breaking the $150 resistance remains a challenge. Solana will need strong buying pressure and favorable market conditions to reverse its bearish trend.