What's the reason behind dump in Solana price in the last 24 hours. Make detailed TA in good buying levels and good levels to book some profits

Analysis of Solana Price Drop and Technical Analysis

Recent Price Movement

• Current Price: $207.42
• Price Change (Last 24 hours): -0.61%
• Price Change (Last 7 days): -17.36%
• Market Cap: Approximately $100 billion
• Trading Volume: Dropped by roughly 40%, now sitting at $89 billion.

Reasons for Price Drop

1. Market-Wide Sell-Off: The cryptocurrency market has experienced significant volatility, particularly after President Trump announced tariffs on Canada and Mexico, leading to a broader market correction.
2. Whale Activity: Although there has been some recovery in whale accumulation, the overall sentiment remains cautious. The number of addresses holding at least 10,000 SOL has increased slightly, indicating some accumulation by large holders.
3. Technical Resistance: Solana has struggled to maintain momentum above critical resistance levels, particularly around $235. The failure to break this resistance has led to a decline in price.
4. Emerging Competitors: New projects like Coldware are attracting attention from large investors, leading to a shift in focus away from Solana.

Technical Analysis

• Simple Moving Average (SMA):
  • Buy Signals: 18
  • Sell Signals: 24
  • Neutral Signals: 19
• Investment Performance:
  • Initial Investment: $1,000
  • Final Amount: $663.21
  • Profit/Loss: -$336.79 (-33.68%)
  • Analysis Period: 60 days (from December 7, 2024, to February 5, 2025)

Key Levels for Trading

• Support Levels:
  • $200: A psychological level that has shown some resilience.
  • $186: Recent low that could act as a support if the price continues to decline.
• Resistance Levels:
  • $212 - $220: This range needs to be reclaimed for a bullish outlook.
  • $250: A critical resistance level that, if broken, could lead to further upward momentum.

Recommendations

• Buying Levels: Consider accumulating around the $200 support level, especially if there are signs of a bounce.
• Profit Booking Levels: If the price approaches the $250 resistance level, it may be prudent to book profits, especially if there are signs of rejection at this level.

Conclusion

The recent drop in Solana's price can be attributed to broader market conditions and technical resistance levels. Monitoring key support and resistance levels will be crucial for making informed trading decisions in the coming days.

For further details, you can check the following articles:

• Solana Price Recovers 10% as Whale Accumulation Grows
• Solana Dropped Below $200 — Can Bulls Push It Above $300?