Solana Holds Strong at $200 Amid $2B Crypto Market Liquidations

The crypto market experienced a sharp correction, with over $2 billion in liquidations recorded in 24 hours. 

Despite the downturn, Solana (SOL) has demonstrated resilience, trading near the $200 mark. The network’s growing popularity in meme coin trading and strong investor interest have played a pivotal role in stabilizing its price.

Solana’s Role in Meme Coin Trading Supports Stability

Solana’s blockchain continues to attract attention due to its low transaction fees and high-speed performance, making it a preferred platform for meme coin trading. Tokens like BONK and WIF have gained traction on the Solana network, driving retail interest and sustaining demand for Solana-based assets.

The broader meme coin market on Solana currently holds a market cap of $12 billion. Although this figure reflects a 13.4% decline over the past 24 hours, the network’s utility has helped reduce selling pressure, allowing SOL to maintain its position near $200. 

Investors are opting to hold their tokens for speculative trading opportunities, further bolstering price stability.

Technical Indicators Suggest Mixed Signals

The 1-hour SOL/USDT chart shows the asset trading below its 20-period moving average, signaling persistent bearish momentum. 

Bollinger Bands indicate reduced volatility, while the Awesome Oscillator (AO) suggests a weakening bullish effort as positive bars decline.

Meanwhile, the Relative Strength Index (RSI) stands at 42.19, reflecting mild bearishness. However, its slight upward movement hints at a potential recovery attempt. 

Key levels to watch include $200 as resistance and $185 as a support zone. Breaking either level could determine Solana’s next price direction.

Analysts Monitor Key Support Levels for Solana

According to crypto analyst Ali Martinez, Solana’s price has retested the lower border of a macro-rising channel. Martinez remarked, 

“SOL price must rebound from the support level of around $191 to avoid a potential selloff towards $138.”

Additionally, the TD Sequential indicator on Solana’s daily chart has presented a buy signal, suggesting possible upward momentum. This development could attract renewed interest from traders seeking short-term gains.

In the middle of this madness, the TD Sequential indicator presents a buy signal on the #Solana $SOL daily chart! pic.twitter.com/Bms2TphnXy

— Ali (@ali_charts) February 3, 2025

Market Data Reflects Recent Trends

As of press time, Solana’s price was $196.28, reflecting a 7.12% decline over the past 24 hours and a 15.50% drop in the last seven days. With a circulating supply of 490 million SOL, its current market cap stands at $95 billion.

While broader market uncertainty persists, Solana’s ecosystem and active trading activities provide a foundation for potential recovery. Investors are closely monitoring its ability to maintain critical support levels in the days ahead.

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