Last Friday witnessed a significant downturn across the broader cryptocurrency market, with over $55 billion in long-position liquidations. As hopes for a positive weekly close faded, the total market cap dipped below the critical $1 trillion threshold heading into the weekend. Bitcoin (BTC) led the decline, plummeting more than $3,000 between Friday and Saturday. This drop echoed across altcoins, including Ethereum (ETH) and Solana (SOL), with the latter falling below $40 on Friday and experiencing further losses over the weekend.
Market Stabilization on Tuesday
Current market data indicates most tokens have stabilized, trading in the green today. However, the top altcoins' 7-day performance remains negative, as weekend losses erased much of the gains recorded earlier in the month. Solana (SOL) stands out among the top 10 cryptocurrencies as one of the most affected assets.
According to CoinMarketCap, the SOL/USD pair rose 2.75% in the past 24 hours but remains down approximately 19% over the last 10 days. During this period, only Polkadot (DOT) among the top 20 cryptocurrencies suffered greater losses.
Solana's Persistent Struggle Below $50
Recent price action highlights the challenges facing SOL holders. Despite multiple attempts to breach $50, each rally has been rejected—the latest push reached a 30-day high of $47.96 before retreating. SOL last traded above this level on November 23. Notably, weekend losses drove the token below $35, flipping previous support into resistance.
The SOL/USD weekly chart reveals $31 as the current critical support level, with bulls targeting a breakout above $35. While recent hours show reduced selling pressure, maintaining this support is crucial to avoid a potential drop toward $20.
Analyst Perspectives: Is Solana Undervalued?
In a YouTube video published December 18, Coin Bureau's host supported FTX CEO Sam Bankman-Fried's assertion that Solana is undervalued. The analysis projected potential price surges, including possible doubling, if market momentum persists.
Key observations from Coin Bureau:
- SOL/ETH weekly charts show 5-6 week downtrends followed by 1-3 week recoveries
- Anticipated brief bullish momentum post-Ethereum Merge (though limited by broader crypto winter)
- Performance post-correction depends heavily on Solana's ecosystem developments
👉 Discover why analysts remain cautiously optimistic about Solana's mid-term trajectory
Technical Indicators Paint Mixed Picture
Solana's technicals suggest continued downside risk:
- Daily charts show 20, 50, and 100 SMAs/EMAs favoring "sell" signals
- RSI (14) at 39.36 indicates neutral market conditions
- Key resistance levels: $35 (immediate), $50 (psychological barrier)
- Critical support: $31 (current), $20 (worst-case scenario)
FAQ: Solana (SOL) Price Dynamics
Q: Why has Solana struggled below $50?
A: Broader market downturns, loss of key support levels, and reduced risk appetite have compounded SOL's challenges since November.
Q: What could trigger a Solana price recovery?
A: Ecosystem developments (e.g., successful network upgrades), regained $35 support, and improved altcoin market sentiment.
Q: How does Solana compare to other "Ethereum killers"?
A: While AVAX and SOL often move in tandem, Solana's higher volatility means steeper drops but potentially sharper recoveries during bullish phases.
Q: Is now a good time to buy SOL?
A: Market conditions remain uncertain. Investors should watch for sustained holding above $31 and monitor RSI for oversold signals.
👉 Explore strategic entry points for Solana investment
Long-Term Outlook
Despite current struggles, Solana maintains:
- Top 10 market cap position
- Active developer community (over 2,000 monthly contributors)
- High-throughput blockchain capabilities (2,500+ TPS)
- Growing NFT and DeFi ecosystems
The coming months will prove critical for SOL as it navigates technical resistance levels while the broader market seeks direction post-crypto winter. As always, prudent risk management remains essential for investors eyeing potential rebounds.