Despite a strong start to the year, Solana 
$78 (SOL) has recently experienced significant price volatility. After reaching new highs, the cryptocurrency has faced declines due to market corrections and selling pressures. In the last 24 hours, SOL dropped by 19%, bringing its value down to $128.14. Its market capitalization fell to $70.16 billion, while its trading volume decreased to $9.56 billion. Major transactions executed by FTX and Alameda have been pivotal in influencing these price movements.
Reasons Behind the Decline in Solana’s Price
The fluctuation in Solana’s price can primarily be attributed to significant sell-offs and prevailing market conditions. Recently, FTX and Alameda released approximately 3.03 million SOL into the market, amounting to around $431.3 million, which heightened liquidity pressure. Due to this selling pressure, investors face a liquidation risk of $300 million as the price fell to around $127.
Additionally, the deposit of 24,799 SOL (approximately $3.38 million) into Binance further exacerbated selling pressure. Similar transactions are expected to continue in the upcoming months. However, it is notable that Solana had surged to $177.88 just the previous day, yet could not maintain this level despite high trading volume and open positions. Market players are closely monitoring support levels around $120.
The Impact of Bitcoin and Market Movements
Bitcoin’s price movements continue to direct the altcoin market. The recovery of Bitcoin 
$62,146 in March might limit Solana’s sharp decline. Historical data indicates that when Bitcoin rises, many altcoins also enter a similar recovery phase.
Current analyses suggest that it is unlikely for SOL’s price to drop below $100; however, a retreat to the $120 level is possible. Investors are keeping a close watch on high trading volumes and liquidation levels. The maintenance of prices at critical support points will emerge as one of the most crucial factors determining the market’s future direction.
