Solana Down 32% In A Month As Sentiment Hits Lows: What Is Going On?

Solana (CRYPTO: SOL) is down 32% in a month, falling to a three-month low of $161, with trader sentiment at its lowest driven by recent market trends and the LIBRA rug pull.

Trader Notes: Crypto trader Jelle pointed out that Solana has closed above its prior lows, but the weekly close should be monitored. He believes a strong bounce will only happen if SOL reclaims $185 by Friday.

Crypto chart analyst Ali Martinez noted that Solana is breaking out of an inverse head-and-shoulders pattern on lower timeframes, setting up for a potential 6% move toward $180.

Bitcoin OG trader Lucky sees strong upside potential at $170, citing high trading volume and ecosystem expansion. He believes SOL is undervalued and expects a bigger rally ahead.

Statistics: Santiment data shows Solana's sentiment is at its lowest since Jan. 20, with traders frustrated over its 3-month low of $161.

Despite high discussion rates and bearish sentiment, historical trends suggest a high probability of a bounce, as markets often move against crowd expectations.

DefiLlama data shows Solana's total value locked at $8.3 billion compared to the peak of $12.1 billion reached on Jan. 20. Solana open interest has also plummeted to $5.6 billion from $8.6 billion recorded in January, according to Coinglass data.

Read Next: 

• Solana Meme Coin Ecosystem Under Fire: Galaxy Research Cites LIBRA Rug Pull As Major Blow

Image: Shutterstock