Solana Risks Further Plunge After Losing the $100 Level... Where Is the Bottom?
Solana Risks Further Plunge After Losing the $100 Level... Where Is the Bottom?
Solana (SOL) has suffered a sharp price correction after losing the psychologically important $100 support level. Since then, it has failed to regain recovery momentum and is now facing the risk of further declines.
According to crypto-focused media outlet BeInCrypto on February 8 (local time), intensifying market-wide selling pressure recently caused Solana to break below the $100 level it had held for months, delivering a significant shock to investors. The drop is seen as the result of a combination of tightening liquidity within the Solana ecosystem and deteriorating key on-chain indicators. BeInCrypto warned that Solana’s fall below $100 may not be a temporary pullback but the beginning of a long-term downtrend.
Technical indicators are casting a dark shadow over Solana’s outlook. While the Relative Strength Index (RSI) has entered oversold territory, it shows no sign of a rebound, and the Moving Average Convergence Divergence (MACD) also suggests mounting downward pressure. In particular, the former $100 support has turned into resistance, becoming the biggest obstacle as strong selling emerges whenever the price attempts to recover. Experts predict that if Solana fails to quickly reclaim the $100 level, the price could slide to $80 or even lower.
A sharp decline in the number of active users and transaction volumes on the Solana network is also hindering any price recovery. Once a leader in the memecoin boom that expanded its ecosystem, Solana has recently seen its investment appeal diminish amid renewed concerns over network stability and growing competition from rival chains. There are also signs that whale investors are shifting portions of their holdings into Ethereum (ETH) or stablecoins to manage risk. This capital outflow is creating a vicious cycle that further intensifies downward pressure on Solana’s price.
Despite expectations of regulatory easing under the Donald Trump administration, Solana continues to struggle to find its own momentum. While institutional changes such as the proposed U.S. crypto market structure bill (CLARITY) are on the horizon, the market remains more sensitive to the immediate price breakdown and loss of key support levels. Analysts emphasize that for Solana to regain its former glory, technological innovation within the network must be coupled with substantial inflows of institutional capital.
Ultimately, Solana faces the critical challenge of rebuilding a support base below $100 and restoring market confidence. It is likely to take considerable time for the current downtrend to stall and for signs of a rebound to emerge, and investors are advised to exercise extreme caution amid the heightened volatility. Solana’s next moves are expected to serve as an important barometer for the broader altcoin market’s recovery.
Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on this content. The information provided should be interpreted solely for informational purposes.
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