{"id":566152,"date":"2026-01-30T20:30:50","date_gmt":"2026-01-30T15:00:50","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=566152"},"modified":"2026-01-30T15:52:07","modified_gmt":"2026-01-30T10:22:07","slug":"solana-why-sol-risks-a-30-drop-after-losing-key-support","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/solana-why-sol-risks-a-30-drop-after-losing-key-support\/","title":{"rendered":"Solana: Why SOL risks a 30% drop after losing KEY support"},"content":{"rendered":"

The crypto market faced a slump, intensifying selling pressure on Solana [SOL] as trader and investor sentiment turned increasingly bearish.<\/span><\/p>\n

Within this broader sell\u2011off, SOL was hit the hardest. It lost a key support level at $118, which it had successfully defended since March 2024.<\/span><\/p>\n

Adding to the bearish outlook, a newly created wallet deposited 2 million USDC on the Hyperliquid DEX and opened multiple short positions. This reflects the current market outlook, according to the crypto tracker Onchain Lens<\/a>. <\/span><\/p>\n

Further analysis of the whale\u2019s activity shows that it has opened a massive SOL short position worth $6.15 million at the $122.91 level.<\/span><\/p>\n

This sell-off is not limited to the crypto market alone; it has also been observed on Wall Street.<\/span><\/p>\n

According to on-chain analytics platform SoSoValue<\/a>, U.S.\u2013based Solana spot exchange-traded funds (ETFs) recorded a significant outflow of $2.22 million. This suggests that investors and institutions are withdrawing capital from the underlying asset.<\/span><\/p>\n

\"spot<\/a>
Source: SoSoValue<\/figcaption><\/figure>\n

Both developments highlight market sentiment toward Solana, and their impact is reflected in the asset\u2019s price.<\/span><\/p>\n

Solana price action and key levels\u00a0<\/b><\/h2>\n

At press time, SOL<\/a> plunged 6.65% over the past 24 hours and was trading near $115. <\/span><\/p>\n

Despite the price decline, market participation surged significantly, with SOL\u2019s trading volume jumping 105% to $7.60 billion during the same period. This indicates strong interest from traders and investors, leading to heavy market participation.<\/span><\/p>\n

Looking at the price charts, it appears that SOL has lost one of its strongest key support levels at $118, which it had been holding since March 2024. <\/span><\/p>\n

On the weekly chart, the asset had previously rebounded from this support more than ten times, but SOL has now failed to hold it.<\/span><\/p>\n

\"Solana<\/a>
Source: TradingView<\/figcaption><\/figure>\n

On the daily chart, price action suggests that SOL could see a strong downside move, potentially declining by 30% and reaching the $78 level in the coming days. <\/span><\/p>\n

However, this outlook would only be validated if the asset remains below or closes a daily candle under the $118 level.<\/span><\/p>\n

\"Solana<\/a>
Source: TradingView<\/figcaption><\/figure>\n

Technical indicators, including the 50-day Exponential Moving Average (EMA) and the Average Directional Index (ADX), support SOL\u2019s bearish outlook.<\/span><\/p>\n

Notably, SOL was trading below the 50 EMA, indicating that the asset is bearish in the short term. <\/span><\/p>\n

Meanwhile, the ADX, which measures the strength of the current trend, had risen to 33, above the key threshold of 25, suggesting that SOL is experiencing a strong directional trend.<\/span><\/p>\n

Traders eye short-leveraged positions<\/b><\/h2>\n

From a derivatives perspective, traders appear to be strongly positioned on the bearish side.<\/span><\/p>\n

According to CoinGlass data, intraday traders are closely monitoring two critical price levels. On the downside, the focus is on $112.8, while on the upside, attention centers around $120.2.<\/span><\/p>\n

At these levels, traders have established significant leveraged positions. Short\u2011leveraged positions total $55.15 million, while long\u2011leveraged positions are far larger, amounting to $241 million.<\/span><\/p>\n

This positioning highlights the market\u2019s current tension, with traders preparing for sharp moves in either direction.<\/span><\/p>\n

\"SOL<\/a>
Source: CoinGlass<\/figcaption><\/figure>\n

This positioning clearly reflects how intraday traders are viewing SOL at the moment.<\/span><\/p>\n

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Final Thoughts<\/b><\/h2>\n