SOL Update: Investors Are Pulling The Plug As The Token Plunged By 25% In Las Two Weeks

Solana hit a major slump as it sunk to its lowest price since mid-October. At press time, the token is trading below the $153 margin. This marks a sharp decline of 9% in the last 24 hours and a total decline of 25% over the past 14 days, as per the data received from Coingecko.  

This price drop comes at a time when the currency is facing a lot of problems. Firstly, the connection of Solana to the Libra scandal even put the President of Argentina, Javier Milei, in jeopardy. Secondly, the dwindling popularity of meme coins is another reason behind it. These coins boosted the Solana network. Hence dwindling of the meme coin’s valuation has affected Solana greatly.  

The Libra token that was built on the Solana blockchain has lost about 90% of its value in just a matter of a few hours. This collapse instantaneously sparked rumours of fraud. Things were so bad that there was an open call for the impeachment of President Milei since he was the one who promoted Libra openly on a social media platform. 

SOL Technical Analysis 

Technical analysis of the SOL token has shown that the token is going through some bearish momentum. The token broke below a crucial support level of $158 after a brief period of consolidation. As a result, the Gaussian channel is showing bearish momentum as the price dropped heavily below the said channel. As a result, showing that the token needs to recover upto a major level to transform the sinking ship into a bullish trend.  

In other reports, it was found that Binance, one of the biggest crypto exchanges, has seen investors releasing SOL tokens heavily. This selling pressure is coming at a time when around $2 billion SOL tokens are all set to be unlocked. Which could flood the market and drop the price of the token further.  

Therefore, in light of these happenings, a leading liquidity provider has reportedly withdrawn around $38 million worth of SOL tokens from Binance. Some believe that the organisation is priming itself to sell these tokens at a higher value. Therefore, this has confused investors who are waiting to see any sort of pricing movement.