$SOL

Solana (SOL) experienced a significant crash after reaching its all-time high (ATH) of approximately $294 in February 2025. By April 2025, the price had declined by over 50%, trading around $130.

📉 Key Factors Behind the Crash

1. Technical Breakdown: Solana formed a “Death Cross” in early March 2025—a bearish technical indicator where the 50-day moving average crosses below the 200-day moving average. This pattern signaled potential for further declines and contributed to a 28% drop in SOL’s price .

2. Market Sentiment and Correlation with Bitcoin: Solana’s price movement is closely correlated with Bitcoin, exhibiting a 0.92 correlation coefficient. As Bitcoin faced its own challenges, Solana’s price was similarly affected. The broader market’s bearish sentiment further exacerbated SOL’s decline .

3. Decreased Network Activity: Solana’s transaction volumes dropped by 19% since the start of 2025. Additionally, trading volumes on Solana-based decentralized exchanges (DEXs) like Jupiter and Raydium decreased significantly, indicating reduced user engagement and network activity .

4. Ecosystem Challenges: Controversies such as the “Pump.fun” incident and the “Libra scandal” undermined investor confidence in the Solana ecosystem. These events contributed to a reassessment of SOL’s valuation and potential .

Outlook and Recovery Potential

Analysts suggest that for Solana to recover, it must first reclaim the $137 support level. A successful breakout beyond this level could pave the way for a rally toward $155. However, failure to hold above $128 might lead to further declines, potentially testing the $100 support zone.

Long-term projections remain cautiously optimistic. Some forecasts predict that SOL could reach $400 by the end of 2025, contingent on favorable market conditions and renewed investor confidence .