Solana Price Faces Key Technical Levels Amid Mixed Market Signals

Solana (SOL) price has fallen below $100, marking a key technical level as bears continue to dominate the market. The recent decline followed a sharp sell-off earlier in the week, with price action indicating deteriorating momentum across multiple time frames. Analysts are now watching whether this level will hold as a support or if further weakness could push the token lower.

Despite the price drop, on-chain activity for Solana has remained robust. Network transactions reached an all-time high of over 150 million in recent days, according to Blockworks data. This suggests that while the price is under pressure, the underlying network is still attracting users and processing activity.

Investor sentiment has shifted toward caution, with the crypto Fear and Greed Index registering a level of 14, indicating intense risk-off behavior. Traders are closely watching key resistance and support levels as they assess whether the recent correction could lead to a sustained recovery or further declines.

Why Is This Happening Now?

Technical indicators suggest that Solana has entered a bearish phase, with price breaking key support levels that had previously acted as barriers to downward movement. The relative strength index (RSI) has moved into oversold territory, but this has not been enough to trigger a strong rebound, raising questions about the strength of buying pressure at current levels.

Institutional demand has also slowed in recent weeks, with spot ETF inflows into Solana-linked products amounting to just $9 million per day since January. While this is positive compared to outflows seen in Bitcoin and Ethereum ETFs, it indicates that institutional investors are taking a more cautious approach to the asset class.

What Are Analysts Watching Next?

Market experts are tracking key price levels to determine whether Solana can stabilize and begin a recovery. One critical support area is the $95–$100 range, which has historically served as a strong floor for the token. If this level holds, analysts suggest that a 150% rally to $260 could be possible, based on prior rebounds from similar levels.

Conversely, a breakdown below $85 could trigger additional selling pressure, with the next target area potentially falling to $76 and even $60 if the downtrend continues. Derivatives data supports this bearish scenario, with open interest declining and negative funding rates indicating that traders are favoring short positions.

On-chain demand remains a key differentiator for Solana. Despite falling prices, the network has continued to grow, with daily transactions rising to 2.48 billion and stablecoin volume reaching $491 billion in the last 30 days. This suggests that while the price is struggling, the underlying infrastructure and user base are still expanding.

What Does This Mean for Investors?

Investors are advised to remain cautious given the current bearish technical setup. While some analysts believe that a V-shaped recovery could be possible if buyers step in at key levels, others caution that the current environment suggests a more prolonged consolidation period.

For now, the focus is on whether Solana can hold key support levels and whether broader market sentiment begins to improve. If macro conditions stabilize and risk appetite returns, this could provide the necessary spark for a rebound. However, in the absence of such catalysts, the bearish bias is likely to persist.

Market participants are also monitoring the impact of new developments in the Solana ecosystem, including recent announcements about premium staking platforms and institutional partnerships. These could provide additional support for the asset in the longer term.