Solana (SOL) is facing another price crash despite an interest rate cut from the Federal Reserve. According to CoinGecko, SOL’s price has dipped nearly 6% in the last 24 hours, 9.1% in the last week, 8.2% in the 14-day charts, and nearly 21% over the last month. Solana (SOL) was among the best-performing cryptocurrencies of 2024, but the asset’s price has fallen by more than 40% since December 2024. Let’s discuss why SOL’s price has crashed, and if we are entering a crypto winter.
Why Did Solana Crash? Will It Recover?
Solana’s (SOL) dip comes amid a market-wide price correction. Bitcoin (BTC) briefly fell to the $89,000 level earlier today. According to CoinGlass, the crypto market registered more than $500 million in liquidations over the last 24 hours. The market correction is surprising, considering that the Federal Reserve rolled out an additional 25-basis-point interest rate cut.
Solana’s (SOL) price correction could be due to the larger macroeconomic uncertainties. The jobs data may have prompted investors to continue their risk-averse strategies. Moreover, the chances of another rate cut in the near future are substantially low. Slow economic growth and jobs data are likely pulling investors away from risky assets, such as Solana (SOL) and other cryptocurrencies.
Also Read: Solana Shows No New Users: What It Signals for the Next SOL Price Move
There is a possibility that we are entering another crypto winter. However, the current lackluster market should not scare Solana (SOL) investors. SOL has proven to be one of the most resilient crypto assets in the market. SOL’s price fell to below $9 in 2022 after the collapse of FTX. However, since its 2022 lows, SOL has hit multiple all-time highs. The asset hit its most recent peak of $293 earlier this year, in January. While the current market predicament is concerning, there is a high chance that SOL will recover its price very soon.