TLDR
- Solana experienced a dramatic 24.40% surge to $180 following Trump’s endorsement for Strategic Reserve inclusion, accompanied by a 480% volume spike to $14 billion
- The rally was short-lived as SOL dropped nearly 20% to around $140, with exchange inflows outpacing outflows by $195.28 million – the largest since January
- FTX/Alameda recently unstaked 3.03M SOL (worth $431.3M) with 24,799 SOL already transferred to Binance for liquidation
- Despite the downward pressure, market analysis suggests $120 as a strong support level, making a drop below $100 unlikely
- Open Interest jumped 15.80% to $5.05 billion indicating continued speculative activity, though actual spot demand remains weak
Solana’s price movement has taken investors on a volatile journey in recent days, marked by a sharp rally followed by an equally notable decline. The cryptocurrency initially surged 24.40% to reach $180, driven by Donald Trump’s endorsement of its potential inclusion in the Strategic Reserve.
The uptick came with extraordinary market activity, as trading volume exploded by 480% to reach $14 billion, suggesting strong buying pressure at the time. This surge represented a recovery from previous losses experienced over ten trading sessions.
However, the momentum proved unsustainable. SOL has since retreated by almost 20%, trading just under $140 at press time. The decline coincides with FTX and Alameda unstaking 3.03 million SOL tokens, valued at approximately $431.3 million.
The market’s reaction to this unstaking event has been swift. Of the unstaked tokens, 24,799 SOL (worth $3.38 million) has already been transferred to Binance exchange, suggesting immediate liquidation plans.
Exchange flow data reveals a telling story about market sentiment. Net inflows reached $195.28 million, marking the highest level since January 2025. The last time similar inflow levels were observed was when SOL hit its all-time high of $295, which preceded a market reversal.
Despite the price decline, derivatives markets tell a different story. Open Interest has increased by 15.80% to reach $5.05 billion, indicating that speculative traders remain active. Over $1 billion in fresh positions have been opened, largely driven by positive sentiment toward Solana.
Technical Analysis
Technical analysis suggests the formation of a key demand zone at $130, which previously triggered a 46% recovery in less than a week. However, the current price action shows weakening bullish momentum, evidenced by declining trading volumes.
The disparity between derivatives and spot markets presents a potential risk. While speculative positions continue to build, actual spot accumulation remains weak, creating an imbalance that could lead to liquidation cascades.
Looking at support levels, market data indicates $120 as a crucial price point. According to liquidation data from Coinglass, approximately $300 million in positions would face liquidation if prices fall to $127.
Trading patterns show SOL needs to reclaim and hold $180 to confirm any potential breakout beyond $200. The recent failure to maintain this level has shifted short-term market dynamics, suggesting the possibility of continued downward pressure.
Market participants are closely watching the FTX situation, as additional token unlocks are scheduled for April and subsequent months. These events typically influence investor sentiment and can cause price fluctuations.
Historical data provides some context for current market conditions. The cryptocurrency has shown resilience in previous downturns, often finding support at key technical levels before staging recoveries.
The broader cryptocurrency market context plays a role in SOL’s price action. Recent implementation of tariffs on Mexico and Canada has contributed to market-wide pressure, affecting various digital assets including Solana.
Present market indicators suggest continued volatility ahead. With $5.05 billion in Open Interest and ongoing institutional activity, price movements could remain amplified in both directions.
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