The cryptocurrency market bloodbath seems to have no end in sight. Bitcoin (BTC) has fallen to the $109,000 price level, wiping out all gains made over this month. BTC’s correction has led to the larger crypto market facing substantial liquidations. Solana (SOL) is following the market trend, falling below the $200 mark for the first time since Sept. 7. According to CoinGecko data, Solana’s price has seen a dip of 4% in the last 24 hours, 19.9% in the last week, 17.3% in the 14-day charts, and 4.3% over the previous month.
Why is Solana’s Price Facing a Dip? Will It Recover?
Solana (SOL) and the larger crypto market’s latest crash are likely due to uncertainties around US monetary policy. Federal Reserve Chair Jerome Powell highlighted inflation risks and a slowing jobs market in his recent speech earlier this week. Investors are likely moving their funds away from risky assets, such as cryptocurrencies, and into safe havens like gold, which hit a new all-time high recently. The stock market also hit new records over the last few days.
Also Read: Solana Loses September Gains: Will October 2025 Be Different?
Another reason for Solana’s dip could be the high number of token unlocks taking place over this week. According to Tokenomist, around $517 million worth of cryptocurrencies are entering the market from Sept. 22 to Sept. 29. The move may have spooked investors away from the crypto market. Solana (SOL) may have succumbed to the potential sell pressure.
Solana (SOL) has some support at the $195 to $198 level. If the asset falls below this level, it could plunge to the $180 price level. There is a high chance that Solana’s (SOL) price will recover from the dip over the coming weeks. The Federal Reserve is expected to roll out another round of interest rate cuts next month. Another rate cut may trigger a market-wide rally, which could push SOL back to the $250 price level.