Solana Declines Sharply to Near the $175 Mark: Increased Selling Pressure Across the Entire Ecosystem

After failing to hold the important support zone at $184.13 on Thursday, the price of Solana continued to weaken on Friday, dropping below the $180 mark and currently trading around the $178.81 zone. The bearish momentum is becoming increasingly evident, as technical indicators and on-chain data both indicate that the sellers are in control. Liquidation Pressure Surges: Over 86% Are Long Orders According to data from CoinGlass, in just the past 24 hours, up to $57 million in positions have been liquidated, of which 86.79% are long orders, indicating that most investors betting on the bullish trend have been "trapped." If counting from mid-week (Wednesday) to Friday morning, the total liquidation value reached $101.38 million, reflecting the overbought conditions and excessive euphoric sentiment in the SOL market. This sharp decline caused SOL to lose the peak of $205.34 set on February 14, with a decrease of about 12% in just 48 hours. 🧾 The Class Action Increases Negative Pressure Not only technical factors, but legal news also contributes to increased selling pressure. On Wednesday, Burwick Law filed a class-action lawsuit against Pump.Fun – a memecoin creation platform on Solana – in the Southern District Court of New York. In the lawsuit, Pump.Fun is accused of being a "front" for a large-scale illegal gambling and money laundering operation, with stakeholders including Jito Labs, Jito Foundation, Solana Labs, and Solana Foundation. Specifically, the lawsuit is confirmed as Aguilar v. Baton Corp, in which the group of plaintiffs is suing under the RICO Act – a legal framework often applied in cases against organized crime. This information has shaken investor confidence in the entire Solana ecosystem, increasing the wave of sell-offs, especially from institutional investors and leveraged players. 📉 Technical Analysis: The Next Support Zone Is $160 After failing to break through strong resistance at $205.34, the price of SOL has continuously fallen through support zones. Losing the level of $184.13 is a concerning technical signal. Next support: $160 ( important support zone on the daily frame ).Short-term resistance: $184.13 – if SOL recovers above this level, it could open up the opportunity to move back to the zone $205.34.Trading volume: Increasing along with the bearish momentum, indicating that the selling trend is still strong. 🧠 Market Psychology: From Excitement to Worry The mass liquidation event and the lawsuit related to Pump.Fun are rapidly changing market sentiment: Leverage investors: Almost wiped out in the recent fall. Individual investors: Tend to stand aside and observe. Whales and institutions: Showing signs of shifting to a defensive state, reducing exposure to high-risk assets such as memecoins and related platforms. 🎯 Viable Short-Term Scenario

📌 Conclusion Solana is facing a combination of technical sell pressure and unfavorable legal news, which could prolong the bearish momentum in the short term. With high liquidation volume and a high long liquidation rate, investors should be cautious, avoid using high leverage, and closely monitor the support zone of $160 – a level that could determine the next direction of $SOL. {spot}(SOLUSDT)