- Solana faces bearish pressure as the LIBRA memecoin scandal triggers a 60% drop in network transactions.
- Solana struggles to hold support at $168, with risks of declining toward the $160 level amid weakened investor confidence.
Solana (SOL) faced a sharp 4% decline on Friday after failing to break past the $180 resistance level. The drop comes amid growing concerns over the LIBRA memecoin controversy linked to Argentine President Javier Milei.
The Solana network saw a massive 60% decline in transactions, signaling reduced market confidence. With network activity slowing down, SOL’s price remains under pressure.
Altcoin ETF Hype Fades as SOL Faces Sell-Off
Earlier this week, Solana surged 9% on optimism surrounding potential altcoin ETF approvals. SEC confirmations for XRP and Litecoin ETFs boosted market sentiment, but SOL struggled to sustain gains.
The rally hit a wall at $180, triggering a sell-off that sent prices down to $168. While ETF speculation provided some bullish momentum, bearish forces have overshadowed the gains.
LIBRA Memecoin Scandal Rocks Solana
Solana’s price action has lagged behind other top altcoins due to the LIBRA memecoin debacle. The token, promoted by figures linked to Argentina’s political elite, suffered a sudden rug pull, causing major losses for investors.
The situation worsened when Argentine President Milei was pictured with Elon Musk at a Washington event. The controversy has sparked impeachment calls and shaken trust in the Solana memecoin sector.
As a result, Solana network transactions plummeted from 58.9 million on February 14 to 24.8 million on Thursday. This 60% drop highlights growing caution among traders.
Solana’s Price Outlook: Bears Eye $160
SOL’s price forecast remains bearish as the token struggles to hold support at $168. Key indicators signal further downside risk:
- Bollinger Bands: SOL was rejected at $191, confirming strong resistance. The lower Bollinger Band at $165.79 now serves as critical short-term support.
- MACD Indicator: The MACD remains in negative territory, showing ongoing bearish momentum.
- Support and Resistance: If SOL fails to stay above $165, a drop to $160 is likely. A break above $180 could spark a relief rally, but a bullish reversal requires a move past $191.
Solana faces significant challenges as the LIBRA memecoin scandal shakes investor confidence. With transactions declining and technical indicators flashing bearish warnings, SOL remains at risk of further losses.
If bearish pressure persists, SOL could dip toward $160. However, if buyers step in at current levels, a push toward $180 remains possible.
