Solana Price Plummets 6% as Analyst Predicts a Potential Rebound

Highlights:

• Solana’s price drops 6% to $158, its lowest since November 6, despite a 145% spike in trading volume. 
• The crypto analyst highlights a potential rebound in SOL price in the near term. 
• With the oversold RSI, the bulls could initiate a buy-back campaign, breaking above the $184 resistance level. 

Solana’s price has plummeted 6% to $158, its lowest level since Nov 6, as the broader crypto market faces a severe downtrend. SOL is now down 46% from its February high of $293. Despite the fall, its daily trading volume has skyrocketed 145% to $3.64 billion, indicating heightened market activity. 

Meanwhile, popular crypto analyst Ali Martinez has highlighted a potential rebound in the Solana market. In a post on Feb 24, SOL appears poised for a rebound, as the TD Sequential indicator flashes a buy signal on the 4-hour chart.

#Solana $SOL appears poised for a rebound, as the TD Sequential indicator flashes a buy signal on the 4-hour chart! pic.twitter.com/wZXrOZTIDV

— Ali (@ali_charts) February 24, 2025

Further, data shows that the number of active users has dropped to 87.3 million, its lowest level since October 7. It has dropped from the November high of 137 million. That is a sign that some Solana users have sold their tokens.

SOL Statistical Data

Based on CoinmarketCap data:

• SOL price now – $158
• Trading volume (24h) – $3.64 billion
• Market cap – $78.15 billion
• Total supply – 594.83 million
• Circulating supply – 491.08 million
• SOL ranking – #6

The Solana (SOL/USD) daily chart shows a downtrend channel, with the price currently trading near the lower boundary of the descending channel. The 50-day MA (green) presence above the 200-day MA (blue) confirms minor bullish momentum. Additionally, the price attempts to recover but remains below both moving averages, suggesting that sellers still have control. 

Solana Price Poised for a Move Above Moving Averages

At the current level of $158, SOL is showing signs of a potential short-term rebound, but the structure remains bearish. If the price successfully breaks above the 200-day MA at $184 and holds, it could signal a bullish reversal, with the next resistance being the $206 level.

However, failure to reclaim this moving average may result in a continued downward movement, possibly retesting the lower channel boundary near $150 before reaching the key supports at $150 and $138.

On the other hand, the volume analysis shows a mix of buying and selling activity, but there is no significant breakout signal yet. For a bullish scenario, the price needs to break above the upper trendline of the descending channel at $184, ideally with strong volume confirmation.

Conversely, if SOL loses the $150-$157 region, it may accelerate its decline toward $138. Overall, the market is at a decision point where a breakout above resistance or a drop below support will define the next major move.

SOL Hangs in Balance as RSI Shows Oversold Conditions

A quick look at the RSI indicator reveals that it is in oversold territory at 30.75, which may trigger a buy-back campaign. When the RSI hits this level, it typically means that the currency is undervalued and poised to bounce back. Additional increasing buying appetite could push the RSI above 40, further confirming a probable trend reversal. This may result in Solana’s price rebounding, potentially breaching the $184 resistance. 

On the other hand, the MACD has plunged to the negative region, flipping below the orange signal line. This suggests heightened selling pressure in the SOL market. Meanwhile, traders should closely monitor how SOL RSI and moving averages behave in the market. A decisive breakout above the $184 resistance could confirm a bullish outlook.