Solana Price Drops 11% as Analyst Predicts a Potential 20% Breakout

Highlights:

• Solana’s price has plummeted 11% to trade at $224.
• Virtuals has announced its expansion to the Solana ecosystem, marking a significant milestone.
• Crypto analysts predict a potential 20% breakout in Solana price.

The Solana price has plummeted 11% to $224 at press time as the marketwide downtrend broadens. Despite the plunge, its daily trading volume has soared 95% to $8.06 billion, indicating strong market activity. 

Meanwhile, Virtuals Protocol has announced its expansion to the Solana ecosystem, marking a significant milestone in its mission to support builders and foster innovation across multiple ecosystems. As part of this expansion, Virtuals will launch the Meteorapool on Solana, offering new trading opportunities. 

Virtuals is Expanding to @solana!

We are beyond excited to announce Virtuals' expansion to Solana, marking a significant step in our journey to empower builders and drive innovation across multiple ecosystems. Solana, known for its speed, scalability, and vibrant community, is… pic.twitter.com/7CGq3rLQwa

— Virtuals Protocol (@virtuals_io) January 25, 2025

Additionally, a portion of trading fees will be allocated to a Strategic SOL Reserve to reward creators and agents within the ecosystem. The AGENT/VIRTUAL trading pair will also remain consistent on Solana, ensuring user continuity.

Elsewhere, a well-known analyst, Ali Charts, has predicted that Solana may be poised for a 20% breakout if the hourly chart closes outside the $251-$262 mark. 

#Solana $SOL is primed for a 20% price breakout. Just wait for an hourly close outside of the $251-$262 range! pic.twitter.com/uomyl1SNUt

— Ali (@ali_charts) January 27, 2025

SOL Statistical Data

Based on CoinmarketCap data:

• SOL price now – $227
• Trading volume (24h) – $8.06 billion
• Market cap – $110.65 billion
• Total supply – 592.9 million
• Circulating supply – 486.7 million
• SOL ranking – #5

Amid the gloomy landscape in the crypto market today, Solana’s price is no exception. It has plummeted 11% to $226, 23% from its ATH of $295. Other major altcoins, including Bitcoin and Ethereum, have wobbled 5% each, indicating waning market sentiment. 

Solana Price Poised for a Rally to $300 if the $259 Barrier is Weakened

Despite the drop, the daily chart for SOL/USD reflects bullish momentum as the price maintains above the 50-day and 200-day MA. This demonstrates a potential upside if the bulls gain dominance at this level. 

However, the chart shows a rejection near the $259 level, suggesting temporary profit-taking by traders. Despite the pullback, the higher trading volume in the recent bullish candles signals sustained buying interest, which could lead to a rebound in SOL price in the short term. 

A zoomed outlook at the daily chart shows the next major resistance level for SOL/USD lies at $273. For the bullish scenario to remain intact, the price must maintain support above the $218 mark and ideally above the $211 level. A daily close above $259 would strengthen the case for further upward momentum, potentially targeting $273, $292, and $300 in the coming days.

On the downside, the support levels of $218, $211, and $206 are critical for sustaining the bullish structure. A break below this level could invalidate the bullish sentiment and attract additional selling pressure, triggering panic selling in the market. 

However, the overall sentiment remains bullish as long as the price remains above the 50-day moving average. Traders should monitor volume trends and price action near key support and resistance levels to confirm the market’s next direction.

The RSI at 50.63 suggests an equilibrium perspective, in which the altcoin is neither overbought nor oversold. The MACD indicator is notably on the verge of making a bearish crossover. Until then, traders are at liberty to rally behind Solana’s price.