Solana is currently trading at its lowest levels since September 2024, with extreme fear and selling pressure dominating the market. Since breaking its all-time high in January, SOL has retraced over 55%, leaving bulls struggling to regain momentum. The broader crypto market is navigating a period of uncertainty, and Solana has been one of the hardest-hit altcoins in recent weeks.
Bears have remained in control, consistently driving prices lower as investor confidence wanes. The previously thriving meme coin speculation that fueled Solana’s rally has now become a major headwind, exacerbating the selloff and hindering a stable recovery. Analysts suggest that further declines could be imminent, especially if SOL fails to reclaim key support levels.
Analyst Jelle recently shared a technical analysis on X, indicating that Solana has broken below a crucial demand level, highlighting an increased risk of additional downside. According to Jelle, SOL’s current price structure suggests that bears still maintain control, and unless a robust bounce occurs soon, lower price targets could materialize. With market sentiment at extreme lows, all eyes are on Solana to determine if it can stabilize or if further declines are on the horizon.
Solana As Market Turns Bearish
Solana has fallen below critical demand levels that once supported its long-term bullish trajectory. The bulls have lost control, and bears continue to dominate, pushing the entire market lower. Since achieving all-time highs in January, SOL has dropped over 55%, undoing months of gains and signaling deep fear among investors. The growing selling pressure has made Solana one of the foremost casualties among altcoins, particularly those influenced by meme coin dynamics. The speculative excitement that originally drove Solana’s surge has now morphed into a significant risk, with rug pulls and liquidity challenges shaking investor confidence.
Jelle’s analysis indicates that when he divested his SOL holdings, he did not anticipate such a drastic price decline. He notes that Solana has lost both monthly and weekly support levels, which could suggest further bearish momentum. The breakdown below these key demand zones has intensified negative sentiment, complicating any short-term recovery efforts.
The forthcoming week will be crucial for Solana’s price actions as the market skews increasingly bearish. If SOL fails to reclaim its lost support, it may face an additional onslaught of selling pressure, potentially dragging it down to lower demand zones around the $140 mark. Conversely, should bulls manage to regain momentum and push the price back above $185, this could initiate a short-term relief rally.
With the broader market showing signs of struggle and uncertainty escalating, Solana’s immediate future will be pivotal. Investors remain wary as fear pervades market sentiment, yet some analysts maintain hope for a recovery if conditions improve. The next few days will be critical in determining Solana’s fate in this turbulent market.
Price Struggles To Hold $140
Currently, Solana is trading at $139 following a severe selloff that saw the price plunge over 22% since Sunday. The broader crypto market is experiencing intense selling pressure, with SOL appearing to suffer more than its altcoin counterparts. Bearish momentum remains potent, and bulls are finding it challenging to establish a clear support zone.
Should Solana manage to maintain its position above the $140 mark, there exists a potential for short-term recovery. Bulls must intervene and push the price above $150 to exhibit strength and prevent further downside. However, the current market sentiment remains weak, and any failure to reclaim lost levels could lead to additional declines.
In the event SOL drops below $140, the next substantial demand zone lies within the $125–$130 range. A breach below this level would confirm a more profound correction, potentially pushing SOL to its lowest price since August 2024. As market volatility increases, investor caution is on the rise, rendering Solana’s price movement increasingly uncertain.
For the time being, traders are vigilant for early signs of a potential bounce, yet the risk of continued declines remains significant. If the broader market does not recover imminently, Solana could continue to encounter downward pressure, testing even lower support levels in the upcoming days.
Featured image from Dall-E, chart from TradingView
