Solana Crashes below $81, Marks Two-Year Low as $130B Wiped From Crypto — Bears Target $50

Solana has plunged below $81, hitting its lowest price in two years as the broader cryptocurrency market sheds over $130 billion in value. The native token SOL now trades at $78.54, recording a 15.61% drop in 24 hours and a steep 32.72% decline over the past week.

The sharp selloff has pushed Solana’s market capitalization down to approximately $44.31 billion. Bears have now set their sights on the $50 level as the next potential target. The total crypto market cap has fallen to $2.45 trillion amid widespread risk aversion.

Bitcoin slipped under $70,000 during the same period, while Ethereum dropped to $2,100. Liquidations across the market exceeded $700 million, with no single catalyst identified. Analysts point to broad risk aversion and declining tech stocks as contributing factors.

Solana Selloff Sparks $700 Million in Crypto Liquidations

The crypto market downturn has been severe and widespread. The total market cap fell 10.63% to $2.24 trillion, wiping out over $130B with Bitcoin down 11.72%. The CoinMarketCap Fear & Greed Index plunged to “Extreme Fear” at 11.

JUST IN: $130,000,000,000 wiped out from the crypto market cap in the past 24 hours. pic.twitter.com/00pZ4MX4Ct

— Watcher.Guru (@WatcherGuru) February 5, 2026

The selloff showed high correlation with U.S. equities. The S&P 500 ETF (SPY) fell 1.14%, while the tech-heavy QQQ dropped 4.14% over the same period. High-beta assets like SOL suffered disproportionately in the capital flight.

Global crypto derivatives open interest surged 14.09% to $629.74 billion. Bitcoin saw $620.67 million in liquidations over 24 hours, with longs comprising over 90% of that total. The meme coin sector, closely tied to Solana’s ecosystem, was particularly devastated.

According to Lookonchain, Solana ETFs also turned negative on both timeframes. The funds recorded a one-day net outflow of 13,901 SOL worth $1.32 million. The seven-day period showed a net outflow of 3,550 SOL valued at $337,000.

Feb 5 Update:#Bitcoin ETFs:
1D NetFlow: -7,925 $BTC(-$533.16M)🔴
7D NetFlow: -19,090 $BTC(-$1.28B)🔴#Ethereum ETFs:
1D NetFlow: -37,809 $ETH(-$73.84M)🔴
7D NetFlow: -174,917 $ETH(-$341.61M)🔴#Solana ETFs:
1D NetFlow: -21,223 $SOL(-$1.78M)🔴
7D NetFlow: -66,177… pic.twitter.com/VAor5KIocr

— Lookonchain (@lookonchain) February 5, 2026

Solana Network Activity Stays Strong Amid Price Drop

Despite the price crash, Solana’s network activity tells a different story. Crypto analytics account SolanaFloor reported that Solana continues to lead all Layer 1 and Layer 2 blockchains in 24-hour DApp revenue.

The network also outperformed competitors in decentralized exchange volume. Solana surpassed Ethereum, BSC, Base, and Arbitrum over the same period. This on-chain strength contrasts sharply with the token’s market performance.

🚨UPDATE: @Solana continues to lead all L1 & L2 chains in 24-hour DApp revenue and DEX volume. pic.twitter.com/6p2TTVVvUI

— SolanaFloor (@SolanaFloor) February 5, 2026

One analyst, Crypto Curb, identified $100 as an extremely important level for Solana. According to their assessment, holding above $100 could trigger the next leg toward new all-time highs. A breakdown below that level would likely lead to extended consolidation toward $50 throughout 2026.

Social media reactions have been mixed. Phantom wallet posted a sarcastic plea to flip the chart green. Solana’s official account praised its community’s resilience amid the turmoil.

SOL Price Breaks Below Key Moving Averages in Bearish Structure

Solana’s daily chart confirms a decisively bearish structure. The price has established clear lower highs and lower lows since the September 2025 peak near $240. SOL has declined approximately 67% from those highs.

The token trades well below its seven-day simple moving average at $105 and its daily pivot point at $93.71. Critical support sits at the current $78-80 zone, with the next targets at $65-68 and $50-55 if current levels fail.

Key resistance levels have formed at $95-100, representing the recent breakdown point. Additional overhead supply exists at $120-125, which previously served as range support. The $150-160 area marks trend invalidation territory.

The Relative Strength Index stands at 19.99, signaling extreme oversold conditions. However, no bullish divergence has formed yet. In strong downtrends, RSI can remain oversold for extended periods without triggering reversals.

The MACD reading shows maximum bearish divergence. The MACD line sits at -4.20 with the signal line at -6.87. The histogram at -11.08 continues expanding downward, confirming accelerating bearish momentum.

Volume analysis reveals a distribution pattern with massive selling pressure. The most recent session recorded 798.82K SOL in volume, significantly above average. Red volume bars have dominated recent sessions without reversal patterns forming.

A reclaim of the $90-93 area would provide the first sign of buyer interest. Failure to achieve this keeps the path of least resistance pointing lower. The overall trajectory remains bearish until broader market conditions stabilize and Bitcoin holds above $65,000.