As of 11th March 2025, Solana (Sol) stands at around US$123.19, falling by 3.07 percent in the last 24 hours. The decline is occurring in the backdrop of wider market movements, driven by macroeconomic conditions and policy actions. As Solana has recently been highly volatile, investors are wondering if it can recover to the US$180 level.
In a report by Barron's Solana has not been able to sustain the upward trend as a result of both technical resistance and general market uncertainty. In the last month, SOL has experienced major sell-offs, which have mostly been due to regulatory updates and investor sentiment.
One of the major reasons for the recent decline in price is a lack of firm buying demand at major levels of resistance. Despite flashes of hope, the Bears have dominated, and SOL fell below important zones of support. The overall market of cryptocurrencies has also been weakened by macro factors like increasing interest rates and speculations of recession, adding to the overall negative sentiment.
US President Donald Trump's executive order to create a US strategic cryptocurrency reserve is among the most recent trends influencing the crypto market. As reported by the Financial Times, the reserve will be made up of digital assets obtained through forfeiture instead of more government purchases. This action was a letdown for traders who were expecting huge acquisitions, which triggered a sell-off in various cryptocurrencies, such as Solana.
The announcement has fuelled controversies around the long-term effects on the crypto market. While some analysts see the initiative to boost institutional confidence in digital assets, others see that the fact that there will be no direct purchases by the government reduces the potential effectiveness. As such, Solana and other large altcoins have come under a flood of liquidations following this move.
One of the most important factors in determining if Solana can reach US$180 once more is its technical configuration. Recent technical analysis shows that SOL broke a strong support zone at US$186, where 68 percent of leveraged long positions were concentrated. The following significant support level is around US$175, and it is an important zone to monitor for possible rebounds.
Technical indicators are bittersweet. The Relative Strength Index (RSI) has dipped into oversold terrain, which means that if increased buying pressure occurs a rebound may occur. However, moving averages indicate a prevailing bearish trend. Thus, Solana will find it impossible to recover unless some serious catalyst appears.
On the positive side, analysts point out that Solana has shown strength in past market declines. If the token holds at US$175 and crosses resistance at US$160, it might experience fresh buying pressure that can push it towards the US$180 mark. Moreover, any considerable rising trading volume in the coming weeks may indicate building speculative interest for a comeback.
Despite this recent price dip, Solana's network utilisation signals that longer-term investors seem to still be quite bullish. According to a press announcement, Total Value Locked (TVL) across the Solana DeFi market increased by 7 percent, from US$8.06 billion to US$8.67 billion. Hence, there is consistent activity for Solana's decentralised applications, an important yardstick for its long-term strength.
In addition, Solana sees a noticeable spike in development activities, which keeps pacing up with new projects and upgrades to firm it up as an ecosystem.
The top transaction speed with almost no cost distinguishes and therefore cultivates a development culture that continues attracting developers and users to the platform, hence cementing the influence of Solana as one of the premier blockchains. Competition from alternative layer-1 blockchains such as Ethereum and Avalanche remains a challenge that might affect Solana's growth path.
Investor sentiment has been volatile, with regulatory uncertainty being a major factor in driving Solana's price movements. The Financial Times reports that the less-than-anticipated US strategic cryptocurrency reserve announcement deflated hopes for a prolonged rally in digital assets. Additionally, wider macroeconomic considerations, including interest rate increases and geopolitical tensions, have driven market caution.
Social media trends and sentiment analysis show that although most retail investors are optimistic about Solana's long-term prospects, institutional investors are becoming more cautious. The increasing interest in meme coins and speculative tokens has also diverted some investments away from large altcoins such as SOL, which has impacted its short-term price action.
The journey to US$180 will be determined by whether Solana can break its current resistance points and hold on to positive market sentiment. As per reports, if SOL can hold above US$175 and gain strength, a run towards US$180 is possible. However, the inability to hold these support points may cause further drops.
Certain experts think that renewed activity in DeFi and fresh technological developments will act as driving forces for Solana's expansion. In the event of market stabilisation and larger-scale crypto adoption, Solana may witness the renewed interests of retail investors and institutional investors alike.
Yet, there are dangers. Regulatory uncertainty, market-wide adjustments, and more competition from other blockchain networks all may impede Solana's comeback. Shareholders are advised to proceed carefully, diversifying their portfolios to avoid potential losses.
Solana's recent drop reinforces the general crypto market's exposure to policy responses and macroeconomic events. Despite technicals and on-chain insights pointing toward possible recovery, there are still essential external drivers responsible for dictating its path. Investors are instructed to watch very closely the support and resistance zones and keep close tabs on potential regulatory and economic changes that could influence Solana's price action.
In the long term, Solana's robust ecosystem, increasing adoption, and technological innovations may place it in a good position for future growth. Market participants, however, need to be cautious and make investment decisions based on sound analysis and risk evaluation.