- Solana dropped below $180 due to over $57 million in liquidations and a class-action lawsuit involving its ecosystem.
- While technical indicators show weakness, some traders still expect a rebound toward $500.
Solana (SOL) has slipped below the $180 mark after a sharp 6% drop within 24 hours, driven by over $57 million in liquidations and a new class-action lawsuit involving key ecosystem players. The digital asset, which had recently tested its February high of $205.34, failed to sustain upward movement, triggering a wave of long position liquidations—86.79% of total positions—according to data from CoinGlass.
The total liquidation amount ballooned to $101.38 million between Wednesday and Friday morning, underscoring the extent of sell-offs.
Technical indicators continue to flash warning signals. The Taker Cumulative Volume Delta (CVD), a key on-chain metric, turned negative, indicating heavy sell-side pressure. At the same time, the RSI fell to 56 from earlier overbought levels, and MACD histograms are shrinking—both suggesting weakening bullish sentiment.
Lawsuit Compounds Solana Market Uncertainty
Further shaking investor confidence is a class-action lawsuit filed by Burwick Law in the Southern District of New York. The case names Pump.Fun—a Solana-based memecoin platform—alongside Solana Labs, Solana Foundation, Jito Labs, and Jito Foundation. The suit alleges these entities are engaged in illegal gambling and money transmission schemes, calling the entire operation a coordinated fraud.
The legal trouble intensifies already existing selling pressure, raising concerns about Solana’s regulatory future and adding uncertainty to its price action.
Traders Stay Hopeful Despite Turmoil
Amid the sharp downturn, some traders remain optimistic. Notably, Christiaan, a Bybit partner, sees the dip as a setup for a rally. He predicts a potential run to $300, followed by a rise to $500 within this cycle—should key support levels between $168 and $170 hold.
$SOL is ready for a massive pump.
Targeting $400-$450 for this bull run. pic.twitter.com/gYc6AmBBOt
— Christiaan (@ChristiaanDefi) July 21, 2025
Currently, SOL trades near $178.81. If it breaks below $170, eyes turn to the next support at $160. To reverse course, bulls must push the price back above the $184.13 resistance.
Meme Coins Defy Broader Trend
Interestingly, Solana-based meme tokens like Pudgy Penguins (PENGU), Bonk (BONK), and Fartcoin (FARTCOIN) have surged despite SOL’s downturn. PENGU jumped over 400% in a month, while BONK and FARTCOIN gained 158% and 38%, respectively—highlighting that parts of the Solana ecosystem still attract speculative attention.
Whether Solana can rebound or faces further downside may depend on legal clarity and renewed bullish conviction.
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