SOL drops to $95 as Bitcoin, AI stocks and gold sell off: Will traders buy the dip?

The cryptocurrency market experienced a severe liquidity shock on Thursday, led by a sharp 15% drop in Solana (SOL), which plunged from the $110 level to test critical support at $95. This downward momentum was not isolated; it was part of a simultaneous sell-off that affected major risk-on assets, as well as the traditional safe haven of gold.

**The Macro Liquidation Event**

Bitcoin (BTC) fell below key technical support levels, trading near $63,000, signaling broader profit-taking following a period of institutional inflows. Crucially, the concurrent sell-off in AI-related technology stocks—often viewed as the primary engine of recent equity gains—added to the panic. Companies linked to semiconductor and generative AI technology saw heavy red, reflecting a general ‘risk-off’ posture among high-growth investors.

Most surprisingly, gold, which typically rallies during periods of uncertainty or inflation fear, also dropped significantly. This confluence suggests that the market event is not a simple rotation between sectors, but rather a widespread move toward cash and liquidity, often indicative of margin calls or general market de-risking in response to unexpected interest rate or geopolitical pressures.

**Solana’s Specific Challenges**

While riding the macro wave downward, Solana has faced its own internal pressures. Recent reports of network congestion and failed transactions, although being actively addressed by developers, have made the asset particularly sensitive to negative sentiment. The $95 level is a psychologically important support zone established during previous consolidation phases. If SOL fails to hold this level decisively, the next technical support targets are near $85.

**The Buy the Dip (BTD) Outlook**

Analysts are keenly watching the $95 mark to gauge investor appetite. For dip-buyers to successfully step in, the broader market must stabilize. A quick rebound hinges entirely on Bitcoin holding its current floor and showing immediate signs of recovery.

Arguments for a potential bounce center on Solana’s underlying fundamentals: its high transaction throughput and thriving DeFi ecosystem remain strong draws for institutional investors looking past short-term volatility. However, if the current macroeconomic flight to cash persists, technical support levels may be ignored, suggesting that cautious traders may wait for confirmation of stability above $100 before re-entering long positions.

Source: SOL drops to $95 as Bitcoin, AI stocks and gold sell off: Will traders buy the dip?