Solana Price Crumbles 20%: Is SOL On Path To Crash Below $100?

The price of Solana (SOL) has dropped 20% in the past 24 hours, raising concerns about a possible drop below $100. The drop comes after SOL hit a 7-day high, fueled by news of Solana being included in the US Strategic Reserve.

Selling Pressure from Large Institutions
One of the main reasons for the drop is the large amount of SOL being sold by large institutions. Specifically, accounts associated with FTX and Alameda Research have been continuously unstaking and transferring SOL to exchanges like Binance for liquidation. They recently sent 24.79 million SOL, equivalent to $3.38 million, to Binance for sale. In total, these accounts sold about $431 million worth of SOL to cover bankruptcy proceedings and reimburse victims.

Market Reaction and Price Outlook
Currently, SOL is trading around $126, just above the important support zone at $125. If the price closes below this level, there is a high chance that SOL will continue to decline towards the next support level at $100. The negative Chaikin Money Flow (CMF) indicator on the daily chart suggests that selling pressure is still dominant.

However, if SOL holds above $125 and sees a recovery in trading volume, the price could rebound and test the resistance levels at $145 and $155. Keeping an eye on the moves of large institutions and market sentiment will be important in predicting the next price trend of SOL.