Solana experienced a dramatic reversal this week after reaching $205.34 on Tuesday. The cryptocurrency has since fallen nearly 12% to trade below $180.
The sharp decline triggered massive liquidations totaling $101.38 million from Wednesday to early Friday. Long positions bore the brunt of the losses, accounting for 86.79% of the $57 million liquidated in just the past 24 hours.
CryptoQuant data reveals that Solana’s Spot Taker CVD turned negative on Wednesday. This metric measures the cumulative difference between market buy and sell volumes over a three-month period.
When the 90-day CVD is negative and decreasing, it indicates sellers are dominating the market. This bearish signal suggests further downside pressure could be ahead for SOL.
The Relative Strength Index dropped from overbought territory to 56 on the daily chart. The MACD indicator also shows converging lines with falling green histogram bars.
These technical indicators point to fading bullish momentum. SOL closed below its daily support at $184.13 on Thursday, confirming the bearish trend.
Despite the current selloff, some traders remain optimistic about Solana’s long-term prospects. Christiaan, a DeFi investor and Bybit partner, shared a bullish forecast on X earlier this week.
He sees an uptrend forming that could push SOL to $300 initially. After a brief pullback, he expects the price to surge above $400.
This would mark Solana’s second all-time high of the year. The prediction assumes SOL will follow Bitcoin’s path and kick off a broader altcoin season.
The passing of the Genius Act in the United States has boosted market sentiment. Congress appears willing to advance two additional crypto bills, encouraging believers in a new era for the industry.
$SOL is ready for a massive pump.
Targeting $400-$450 for this bull run. pic.twitter.com/gYc6AmBBOt
— Christiaan (@ChristiaanDefi) July 21, 2025
Solana-based meme coins have performed well recently despite the price correction. Pudgy Penguins (PENGU) gained over 400% in the past 30 days.
Other tokens like Bonk (BONK) and Fartcoin (FARTCOIN) posted gains of 158% and 38% respectively during the same period. This activity demonstrates continued interest in the Solana ecosystem.
However, legal challenges are emerging. Law firm Burwick Law filed a class-action lawsuit against Pump.Fun in the Southern District of New York on Wednesday.
The suit alleges RICO claims against the Solana-based memecoin creator. It describes Pump.Fun as part of an illegal gambling and money transmission scheme.
The lawsuit also names Solana Labs, Solana Foundation, Jito Labs, and Jito Foundation as defendants. This legal action adds another layer of uncertainty to the current market conditions.
The key support zone between $168 and $170 represents a former resistance area. A bounce from this level could reinforce bullish expectations.
If SOL recovers and closes above $184.13, it could target the next resistance at $205.34. Breaking above this level would open the path toward $245.
Failure to hold current support could see SOL decline to $160. This represents the next major support level on the daily chart.
The post Solana (SOL) Price: 12% Drop Triggers Over $100 Million in Liquidations This Week appeared first on Blockonomi.
