Solana Slumps 7%-Will It Crash Like 2022?

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Solana Rally Over? <a href="https://minority-mindset.com/sol-usd/">SOL</a> Risks 2022-Like Correction As Price Erases Mid-Week Recovery

Even though institutions are still interested in investing in Solana (SOL), the price has fallen recently along with the rest of the crypto market. Some experts now believe Solana could fall even further, potentially repeating the significant price drop it experienced in 2022.

Solana Loses Mid-Week Gains As Market Wobbles

Solana’s price fell by 7% on Friday, briefly dropping back down to around $84 and wiping out most of the gains it had made earlier in the week. Since a price drop in early February, the cryptocurrency has been trading in a narrow range between $78 and $88, but it hasn’t been able to break out of that pattern.

Despite recent market instability caused by the conflict between the US, Israel, and Iran, this particular cryptocurrency saw a significant increase on Wednesday, rising 13% to reach $94.05 – its highest price in several weeks. It has since settled, trading between $88 and $92.

Trader Tardigrade, a market analyst, believes Solana could reach $100 if its recent price increase is confirmed. He explained that the cryptocurrency is currently testing a key support level after breaking out of a previous trading range, which could provide a solid foundation for further price gains.

Despite briefly rising above a key price point on Friday, Solana’s price has returned to its typical trading range over the past month. According to Rekt Capital, current market trends are similar to those seen at the beginning of a larger market downturn, potentially indicating Solana could face further price declines.

According to our analysis, this cryptocurrency has previously dropped below its $123.28 support level when looking at monthly price charts. For example, in 2022, after falling below this level, SOL briefly traded under $99.06 before bouncing back up.

If the price falls below both $123.28 and $99.06 at the end of a month, it suggests these levels are no longer acting as support. However, this could also lead to a temporary price increase, testing those levels as new resistance, much like what happened in 2022.

Solana’s price might fall back down to around $99 if it doesn’t hold its current level. However, if the price bounces back strongly, it could test the $123 level again before potentially dropping further.

SOL ETFs ‘Defy Physics’

Even though Solana’s price has recently dropped, experts point to continued positive feelings from traditional investors. This is shown by how well investment products linked to Solana are performing.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, recently noted on X that despite a 57% price drop since the launch of spot Bitcoin ETFs in July, these funds have attracted $1.5 billion in investment and haven’t seen any significant outflow of that money.

He observed that institutional investors account for half of the recent investments, which he believes indicates strong and positive support for the future of this market.

Launching a new ETF during a significant market downturn is incredibly difficult, and usually results in very few inflows. Most new ETFs wouldn’t survive a 57% drop in value within the first six months. He emphasized that getting the timing right is crucial, and that Solana is performing exceptionally well given the current conditions.

He also provided a useful comparison by looking at Solana’s $50 billion market value relative to Bitcoin’s much larger $1.4 trillion value. He pointed out that Solana ETFs have attracted $54 billion in new investments – about twice as much as Bitcoin ETFs did at a similar point after their launch, and at a time when Bitcoin’s price was rising.

However, SoSoValue data shows the category saw its first day of losses in over a month on Thursday, with $5.23 million flowing out.

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2026-03-07 08:11