Solana fell 6.86% to $89.63 in 24 hours as a U.S. tech sell-off spilled into crypto. Security and network concerns inside the Solana ecosystem added pressure, and the daily and 4-hour charts still show bearish momentum.
Solana fell 6.86% to $89.63 in the last 24 hours as a sharp sell-off in U.S. tech stocks reached the crypto market. The Nasdaq dropped 5.5%, its biggest one-day loss in 18 months.
Tech sell-off and Solana-specific worries
The tech decline followed the U.S. midterm elections. Investors grew anxious over the political and economic landscape and questioned whether heavy capital flow into AI infrastructure could generate returns in the near term.
Problems inside the Solana ecosystem made the drop worse. Lending protocol Loopscale stopped operations after a security issue, while an upcoming validator upgrade deadline created more uncertainty for the network.
Traders also felt the move. Over $11 million in long SOL positions were liquidated in an hour, which increased the selling pressure.
Charts show bearish momentum
On the daily chart, SOL traded at $89.63, within the 23.6% Fibonacci level and close to its swing low of $88.48. The MACD showed that downward momentum was still intact.
However, the daily OBV showed a slight uptick after its sharp decline during the sell-off. The relatively flat movement offered little confirmation that buying was returning.
The 4-hour chart showed SOL consolidating after its decline into the 23.6% Fibonacci region. OBV trended downward there, which suggested selling activity continued to outweigh buying pressure on the shorter timeframe.
The $88.48 level decides the next move
The $88.48 swing low is an important level to watch. If SOL defends it, the token could continue consolidating or attempt a relief bounce. If it loses the level, $85 would be the next potential downside target.
Source: AMBCrypto
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