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CoinGape 2025-02-03 09:50:19

Here’s Why Solana Price Hovers Around $200 Despite $2.2B Liquidation Event

Here’s Why Solana Price Hovers Around $200 Despite $2.2B Liquidation Event

Solana price trades around $200 despite a sharp market downturn that triggered billions in liquidations across the crypto markets. Inspite of this intensifying volatility SOL has maintained its position, reflecting strong investor confidence. Let’s understand why Solana (SOL) remains not as affected as relative to other altcoins and what to expect next. Why Solana Price Trades Around $200 Even After Brutal Selloff? Solana price remains resilient around the $200 mark despite experiencing a sharp market correction. The blockchain’s growing popularity, fueled by the ongoing meme coin frenzy, continues to drive demand. Notable tokens like BONK and WIF have attracted significant retail participation, leading to sustained interest in Solana-based assets. As a result, investors are holding onto their Solana holdings to engage in meme coin trading rather than liquidating their positions. This has effectively reduced selling pressure, allowing the asset to maintain its value amid market fluctuations. Another critical factor supporting Solana’s price stability is its role as a key platform for meme coin trading. Many traders rely on the network’s low fees and fast transactions, making it an attractive hub for speculative trading. The broader Solana meme coin market cap currently stands at $12 billion, reflecting a 13.4% decline in the last 24 hours. Crypto analysts recently expressed confidence in Solana’s price, calling it a bargain below $200. The cryptocurrency market has faced intense volatility, yet Solana has managed to hover around this crucial level. Despite a broader selloff, Solana continues to maintain strong investor interest. Solana under $200 is free money — barney (@barneyxbt) February 2, 2025 Key Levels to Watch SOL price hovers at $200, with an 8% decrease following other crypto market decreases. Solana price is resilient despite recent market fluctuations, with technical indicators pointing to a possible price bounce. Analysts have identified two critical support zones where buying interest is expected to be strong. The first major support level is around $186, which coincides with a historically significant demand zone. A deeper retracement could push the price toward the $161-$149 range, where previous accumulation has occurred. If bulls maintain control at these levels, a recovery toward higher resistance zones could be imminent. On the upside, the Solana price prediction faces resistance near $220, a level that aligns with a previous rejection area. A breakout above this region could open the door to $260-$280, where sellers might attempt to cap further gains. If momentum remains strong, an extension towards the $300 mark could be on the table. However, failure to reclaim $220 could lead to another retest of support before a sustainable uptrend forms. Solana’s ability to hold above crucial support zones suggests strong demand, preventing significant downside. If buyers step in, the next leg higher could bring a fresh attempt to reclaim the previous 220 levels. The post Here’s Why Solana Price Hovers Around $200 Despite $2.2B Liquidation Event appeared first on CoinGape .

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