Solana Price Crash: SOL Breaches Crucial Support, Next Stop $125?

cryptonews.com:

The Solana price prediction remains uncertain as SOL struggles to maintain stability, dropping over 6% in the past 24 hours.

This decline is driven by a broader bearish sentiment in the crypto market following the Federal Reserve’s decision to delay rate cuts, exacerbating recession fears and geopolitical tensions in the Middle East.

Additionally, concerns over FTX potentially holding 8% of the SOL supply have intensified market apprehensions, adding downward pressure on Solana’s price as investors anticipate possible further declines.

Solana (SOL) is experiencing significant market turmoil following reports that the collapsed FTX exchange holds about 46.5 million SOL tokens, roughly 8% of the total supply, valued at approximately $7 billion.

These revelations have intensified market fears, causing SOL’s price to fall below the critical $160 support level.

Over the past two weeks, SOL has declined by over 9%, with nearly 4% of that drop occurring in the last 24 hours due to concerns over potential token sales.

This situation follows FTX’s earlier sale of $2.6 billion in SOL tokens, which were purchased by major venture firms but are currently locked up.

Analysts suggest further declines could be likely, with SOL potentially dipping into the $140s or even the $130-$150 range if the market reacts strongly to any additional FTX token sales.

Solana (SOL) is feeling the effects of Bitcoin’s recent 14% drop, which saw its price fall from $70,135 to $60,465, resulting in $1 billion in liquidations.

This Bitcoin decline is linked to worsening global economic conditions, such as weak job data and recession fears.

Additionally, uncertainty is heightened by the Federal Reserve’s decision to delay interest rate cuts and rising tensions in