Key Takeaways:
Solana price drops 7.26%, underperforming broader crypto market decline of 3.78%
Technical breakdown below $237 Fibonacci support triggered algorithmic selling pressure
Crypto liquidations hit $920B, dragging SOL lower despite no project-specific news
Technical Breakdown: SOL Falls Below $237 Support
Solana broke below its 23.6% Fibonacci retracement level at $237.35 and pivot point at $238.03, triggering automated sell orders. The MACD histogram turned negative (-0.1259), signaling declining bullish momentum. With SOL now trading below its 7-day simple moving average ($239.79), downside pressure may persist.
The next major support sits at $227.55 (38.2% Fibonacci level).
Market-Wide Weakness Amplifies SOL Losses
The wider crypto market shed $152 billion in value, as sentiment turned risk-off and the Fear & Greed Index fell to a neutral 47.
Although no negative news directly targeted Solana, it remains highly correlated with Bitcoin, which commands 57.74% market dominance. Derivatives data showed $920 billion in liquidations, the highest since August this year.
Whale Activity Suggests Profit-Taking
Despite the dip, SOL remains up 53.5% over the past 90 days and 19.8% month-to-date. On-chain data revealed that whales moved 2.1 million SOL (around $465 million) to centralized exchanges ahead of the drop.
Trading volume surged 136%, confirming that the correction was driven by sell-side pressure and not just thin liquidity.
Outlook:Levels to Watch, Possible ETF Catalyst
While short-term technicals suggest caution, Solana’s fundamentals remain strong, with $820 million in daily DEX volume and robust DeFi activity. Traders will be watching for signs of stabilization in the range of $220–$227, key support zones.
A potential catalyst comes in the form of the SEC’s pending decision on several Solana ETF applications, expected by October. The SEC’s approval could help reverse bearish sentiment and reintroduce institutional interest.
