Solana Price Forecast Turns Bearish After Breaking $100, Is Next Support To Stop The Slide?
The price of Solana entered the new month under pressure after losing the level that served as a psychological anchor for most of the last year. The token’s drop below $100 has shifted the market’s attention from recovery issues to damage control.
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Traders are now looking closely at whether upcoming support levels can halt the decline that has accelerated amid overall weakness in the crypto market. Although the activity of the network and the interest of the institution continue to attract attention, the movement of short-term prices has clearly changed to a bearish trend.
SOL's price trends to the downside on the daily chart. Source: SOLUSD on Tradingview
Solana Price Breaks $100 as Selling Pressure Builds
Before returning to the current level of $102, Solana’s price fell to around $98, marking its lowest point in nearly ten months and extending losses to nearly 20% in the past week and nearly 25% in the past month.
Trading activity slowed as prices fell, and spot volume and output both declined. Data from CoinGlass shows falling open interest, suggesting that long positions are less vulnerable than an increase in aggressive short selling.
The move did not happen alone. The wave of market liquidations throughout the weekend, combined with a small amount of money, advanced the decline in all major cryptocurrencies.
Macroeconomic concerns also took a hit after an expected revival of tight US monetary policy following President Trump’s nomination of Kevin Warsh as the next chairman of the Federal Reserve, a choice viewed by markets as hawkish.
Technical Outlook Points to Lower Support Levels
From a technical point of view, Solana’s structure has been weakened. A break below $100 confirmed a lower high and low pattern, with Solana’s price moving well below its short-term bearish moving averages.
The Bollinger bands are widening, and the Solana price action remains close to the lower band, suggesting the downward trend remains strong instead of stable.
Momentum indicators emphasize stress. The daily relative strength index is hovering near 25, placing SOL deep in oversold territory. While this increases the likelihood of a short-term bounce, it does not, by itself, indicate a trend reversal.
On the downside, traders are looking at the $95 area closely, followed by a broader area of $92-90. Below that, $85 and $80 stand out as major historical support levels. Some on-chain analysis and patterns suggest that if sales are brisk, minor support can reveal deeper areas later in the year.
Fundamentals Remain Active Despite Weak Price Action
Despite the low price forecast, Solana’s underlying network metrics remain relatively strong. January’s transaction figures increased significantly, and the latest data shows continued growth in on-chain activity and stablecoin usage.
Institutional interest is mixed but not found, with pre-January earnings offset by the Solana ETF’s recent exit.
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Currently, the image of technology dominates. Solana will need to reclaim $110 and hold above key moving averages to ease bearish pressure. Until that happens, rallies can be viewed as corrective steps within a broader downtrend, leaving the next support levels as the market’s current test.
Cover image from ChatGPT, SOLUSD chart from Tradingview
