- Janover, a small software company based in the U.S., bought around $4.6 million worth of Solana for its treasury.
- Unfortunately for SOL holders, the crypto market wasn’t as enthusiastic about the move.
- News that FTX and Alameda have just unstaked 186,326 SOL, worth around $21.6 million, could contribute to a possible crash towards $75.
Very recently, news about US software company Janover adding $4.6 million worth of Solana to its treasury shook the altcoin market. However, the altcoin appears to be on shaky ground despite this positive development.
Due to a combination of several factors, Solana remains at risk of falling below the $100 zone once again and even revisiting the $75 zone in the coming days. Here’s a closer look at what’s going on with Solana and why the price action requires special attention.
Janover’s Bet on Solana
Per recent reports, Janover, a small software company based in the U.S., added around $4.6 million worth of Solana to its treasury. This move is similar to investments from MicroStrategy, which has heavily invested in Bitcoin for years as part of its corporate strategy.
In Janover’s case, the market rewarded the company handsomely in a peculiar way. Its stock surged by more than 400% in a matter of days after the announcement, in a show of interest from both institutional and retail investors when it comes to crypto-focused moves.
Unfortunately for SOL holders, the crypto market wasn’t as enthusiastic about the move. Solana now hovers at around $116 after declining from its most recent high of $121.
The ongoing market fears for Solana come amid its break below the $126 price level, which had held firmly since 4 March. Sentiment shifted quickly as soon as this price level gave way on 29 March, with Solana now attempting to reclaim this support-turned-resistance.
Solana now finds itself flirting dangerously with the psychological $100 support. If market conditions don’t improve soon, this level too could flip into resistance and expose Solana to a possible $75 drop.
What’s Dragging Solana Down?
A few major factors are to blame for the ongoing bearishness on the Solana market. The first of these is the global uncertainty over inflation, as well as the trade tensions between the US and China. Even though U.S. President Donald Trump has temporarily paused new tariffs for 90 days, the economic uncertainty remains strong, and traders are still hesitant to go all-in on risk assets.
Bitcoin itself has yet to show strong signs of bullishness, and its influence is weighing down on altcoins like Solana. This means that until Bitcoin shows a clear sign of recovery, it is unlikely that SOL or other altcoins can stage a major comeback. Finally, the last ember in the bearish fires involves news that FTX and Alameda (both of which are still undergoing bankruptcy proceedings) have just unstaked 186,326 SOL, worth around $21.6 million.
While these tokens have yet to be sold, there is a growing possibility of a large-scale dump. Even worse, their staking wallet still holds another 5.36 million SOL (over $621 million). If these tokens start to hit exchanges to be sold, the price reaction could be devastatingly bearish.
Is There A Glimmer of Hope?
As a best-case scenario, Solana will need to break above the $120 resistance with a weekly candle and possibly reclaim the $126 level to confirm a shift in momentum. From there, the next target would sit between $127 and $168, with $142 being the median price level. Investors must be prepared for a possible bearish move if the $100 support fails. At the same time, a bullish breakout from Bitcoin could provide some relief that Solana badly needs at this point.
