Solana (SOL) is facing increasing bearish pressure, with its price struggling to maintain key support levels. The once high-flying altcoin has entered a downtrend, and analysts warn that if SOL fails to hold the $118 support level, a deeper correction could send the price tumbling toward the $100-$90 range.
With market sentiment shifting and selling pressure mounting, is Solana at risk of a major breakdown, or can the bulls defend this crucial zone? Let’s dive into the technicals and market outlook.
Solana’s Bearish Setup: Why the $118 Support is Critical
Over the past few weeks, Solana has shown weakness as it struggles to sustain its bullish momentum. The $118 level has become a critical support zone, as previous attempts to bounce from this range have been met with selling pressure.
🔹 Key bearish signals:
- Lower highs & lower lows – A classic downtrend formation.
- Falling trading volume – Suggests weakening buying interest.
- RSI below 50 – Indicating bearish momentum.
- Increasing exchange inflows – Suggests more SOL being sent for selling.
If Solana breaks below $118 with strong volume, it could trigger cascading liquidations, accelerating a drop to $100 or lower.
Why is Solana Struggling?
1️⃣ Market-Wide Altcoin Weakness
Bitcoin dominance has been rising, drawing liquidity away from altcoins like Solana. When Bitcoin consolidates or corrects, altcoins tend to suffer even more, leading to sharper declines.
2️⃣ Profit-Taking from Whales & Early Investors
On-chain data suggests that large holders have been offloading SOL, likely securing profits from the 2023 rally. Whales reducing exposure could add more downward pressure.
3️⃣ Network Congestion & Performance Issues
While Solana remains one of the most promising blockchain networks, it has faced occasional congestion issues. These technical hiccups sometimes affect investor confidence, especially among traders looking for stability.
4️⃣ Macroeconomic Factors Weighing on Risk Assets
With uncertainty surrounding interest rates, inflation, and regulatory crackdowns, riskier assets like crypto face increased volatility. If broader market conditions worsen, Solana could see further downside.
Will Solana Rebound or Break Down?
Bullish Scenario: A Successful Bounce from $118 🚀
✅ If buyers defend the $118 support, we could see a short-term relief rally toward $135-$140.
✅ A retest and reclaim of key moving averages could restore bullish momentum.
✅ A broader altcoin recovery could help SOL regain strength.
Bearish Scenario: Breakdown Below $118 📉
🔴 If SOL loses $118, the next major support levels are $100 and $90.
🔴 A confirmed breakdown could trigger a panic sell-off, increasing volatility.
🔴 If Bitcoin struggles, Solana could follow with a sharper decline.
📍 Key Levels to Watch:
- Support: $118 → $100 → $90
- Resistance: $135 → $150
Final Thoughts: Is Solana’s Correction Just Beginning?
Solana is at a make-or-break moment—$118 is the last stronghold before a much deeper correction. If bulls step in, SOL could stabilize and recover, but if sellers gain control, the road to $100 or lower becomes highly probable.
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