Solana (SOL) dropped nearly 4% over the past 24 hours, reversing course after trading near $145. The move came as liquidations swept through the crypto derivatives market and weakness spread across altcoins. CoinGlass data showed total liquidations close to $390 million, with about $348 million coming from long positions.
The decline picked up speed after SOL broke below its 20-day and 50-day exponential moving averages, based on CoinDesk Research's technical analysis model. Trading activity climbed sharply during the selloff. In one hourly burst, volume reached 3 million SOL, more than 200% above the 24-hour average.
$128 to $130 turns into the near-term decision zone
SOL is now trading below an important ascending trendline and hovering near multiweek support around $128. Views on the next move remain divided. Some analysts see the drop as a shakeout that could attract fresh buying and reopen a path toward $160. Others are warning that a failure to hold support could send the token down to $122 or lower.
That leaves the $128-$130 area as the main battleground in the short term. If SOL breaks decisively below that range and stays there, the move could strengthen the case for a broader downtrend.
Network fundamentals stay firm while risk appetite weakens
On-chain fundamentals remain solid despite the price pressure. DeFiLlama data shows nearly $15 billion in stablecoins circulating on the Solana network, while RWA.xyz reports more than $1 billion in tokenized real-world assets.
Even so, recent net outflows from Solana ETFs and a wider risk-off shift tied to geopolitical tension and macro uncertainty are adding pressure. For now, the market is watching whether buyers can defend the support band and stabilize price action.