Solana is facing a major sell-off that could see a 40% wipeout
After hitting all-time highs in November last year, Solana (SOL) has really been under massive pressure. The coin is now approaching its last support. If that level is breached, then we could be looking at a massive sell-off. Here are some highlights:
The $80 support level remains the most important for Solana (SOL) right now,
If the altcoin falls below this, we could see a fall towards $50 before the next leg up.
At press time, Solana (SOL) was trading at $88, up around 4% for the day.
Data Source: Tradingview
Solana (SOL) – The selloff risk
The recent rally in the crypto market has seen Solana (SOL) put some distance between the crucial support zone of $80. But there is still a huge sell of risk right now. How long the altcoin is able to keep the price action above $80 remains to be seen.
However, if bears can put enough pressure to drop SOL below $80, then it is likely that the coin will plummet towards $50 in the near term. This will represent a nearly 40% wipeout. But what can bulls do?
Well, the key is to get SOL above $102. This will put the altcoin above several key resistance zones before the $80 mark. While this may happen, it seems highly unlikely given the massive volatility we have seen in the market.
Should you stay clear of Solana (SOL)?
Well, as long as the sell-off risks remain, there is no need to get into SOL just yet. For long-term investors, it would be advisable to watch how the price action plays out.
If we fall below $80, then give it a few days or weeks, and SOL will be selling at a massive discount. But if bulls can get it above $100, buy it then.