Solana (SOL) is experiencing a significant price drop, falling below $160 for the first time since November 2024. This decline has erased the gains that followed the Trump election hype. The Relative Strength Index (RSI) for Solana indicates oversold territory, suggesting that prices may not drop much further. The $160 support level is being closely watched by traders, with $194 being the key resistance point. There is concern regarding a token unlock scheduled for March 1st, as previous unlocks have resulted in selling pressure. However, an upcoming automated market maker (AMM) on the Solana network called Pump.fun could potentially boost trading volume and network activity, which may strengthen Solana's utility and demand. Despite this, short-term market sentiment and macroeconomic factors could still negatively impact Solana's price. Some traders speculate that the price decline is a strategic move by large investors to acquire more Solana before positive news such as a potential Solana ETF approval. The next few days will be crucial in determining whether SOL rebounds or continues to fall to lower support levels.



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