Solana Price Falls Below Bearish Pattern – Is $161 the Next Stop?

 Solana Suffers an 8% Price Drop in 24 Hours Amid Market Downturn
Solana’s price has tumbled by 8% over the past 24 hours, landing at $169, as the overall cryptocurrency market declines by 3% today. The altcoin is down 16.5% this week and has lost 38% over the past month, with traders offloading SOL ahead of the anticipated March 1 unlock. On that day, FTX’s estate is set to release approximately $2.2 billion in Solana tokens.

Moreover, SOL has dropped 42% from its all-time high of $293. This steep decline comes at a time when market sentiment is dampened by an escalating tariff dispute and diminishing enthusiasm for meme tokens.

Strong Fundamentals May Prevent a Further Slide
Despite the recent sell-off, Solana’s robust fundamentals could help cushion the fall, keeping the price from dropping much below the $160 mark. Key network upgrades planned for later this year are expected to drive significant improvements in performance and utility.

Technical Indicators Signal a Potential Rebound
Solana Price Forms a Bearish Pattern: Is $161 the Next Support Level?

While SOL is under pressure today, technical indicators suggest that a rebound might be on the horizon due to oversold conditions. The 30-period moving average (displayed in orange) has hit a new low relative to the 200-period moving average (blue), with the current price falling well below both averages. TradingView charts confirm this trend.

Additionally, Solana’s Relative Strength Index (RSI), shown in purple, has repeatedly dropped below the 30 threshold over the past few days—another sign that the token is oversold. The 24-hour trading volume has more than tripled since Sunday, as investors rush to sell ahead of the March 1 unlock.

Increased Trading Activity and Large Token Transfers
Recent market activity has highlighted significant SOL transfers, including a notable $108 million exchange between two unidentified wallets on Friday. This, combined with the upcoming release of over $2 billion in tokens, suggests that the price might endure further short-term pressure before finding stability. It is possible that SOL could dip to around $157, a level last seen before November’s post-election rally, though a deeper decline is not expected.

There is some concern that the influx of unlocked tokens could flood the market. However, with asset managers like Galaxy Digital and Pantera Capital acquiring substantial quantities of SOL through auctions, this risk may be mitigated.

Looking Ahead: Firedancer Update and Future Recovery
Considering Solana’s enduring strengths, a recovery is anticipated in the weeks following March 1. The network’s upcoming Firedancer update is set to enhance scalability and utility, potentially driving SOL’s price higher as improvements roll out.

Stay tuned for more updates as Solana navigates these turbulent market conditions while preparing for future advancements.