Solana (SOL) has taken a significant hit, plunging more than 7% in a single day as bearish momentum intensifies, pushing the price to its lowest level in over a year.
The digital asset has struggled amid a broader market downturn, liquidity issues, and concerns over the sustainability of its recent meme coin-driven hype. As SOL flirts with critical support levels, traders are asking whether a $100 retest is imminent—or if a recovery could be on the horizon.
Solana Faces a “Perfect Storm” of Challenges
SOL’s latest downturn has been attributed to several factors, including fading enthusiasm for meme coins, the impact of FTX’s bankruptcy estate unlocking millions of tokens, and overall weakness in the crypto market.
Solana (SOL) price could potentially retest the $100 level after breaking below the key $136 support, signaling a bearish outlook. Source: TradingView
According to Matthew Nay, a research analyst at Messari, the meme coin frenzy that initially boosted Solana’s popularity is now losing steam. The Pump.Fun platform, which allowed users to launch meme coins with ease, once saw daily fees as high as $15.5 million in January. However, by Sunday, those fees had plummeted 99% to just $117,000, signaling a dramatic cooldown in speculation.
Meanwhile, FTX’s bankruptcy estate has continued unlocking large amounts of Solana, adding to the selling pressure. Earlier this month, 11.16 million SOL—worth approximately $1.3 billion—were released into the market. “In my opinion, we’re a little oversold,” Nay commented, suggesting that fears surrounding these unlocks may have been exaggerated.
Beyond these Solana-specific issues, broader market conditions have also weighed on the cryptocurrency’s performance. The ongoing global market downturn and economic uncertainty, fueled in part by trade tensions, have created a risk-off environment for investors.
Recent Solana News and Technical Indicators Show Mixed Signals
Technically, SOL completed a five-wave decline, bottoming near a significant support zone around $118. Analysts point to Fibonacci retracement levels aligning with potential reversal zones, and the Relative Strength Index (RSI) has become oversold. “The price structure was following Elliott Wave principles down the drop, getting very close to the 0.618 Fibonacci retracement price at $118,” a market analyst noted. This suggests that SOL may have found temporary support at this level. Failure to hold this price could make way for a more precipitous fall.
The price has dropped to $118.91, aligning with a red Fair Value Gap (FVG), which could attract buyers and trigger a bounce, with the next FVG at $103.41. Source: FairValueBuffet on TradingView
Traders with a short-term focus are looking at resistance levels of $151 and $185, which can act as breakout points in case Solana regains its momentum. A decisive move above these levels would confirm a bullish reversal setup.
Investor Sentiment and Liquidity Concerns
Despite technical buy signals flashing, Solana’s trading volume has collapsed by 61%, indicating weak buying pressure. Liquidations have also surged, with over $26.5 million in trades wiped out in the past 24 hours—most of them long positions.
Adding to Solana’s woes, a significant amount of capital has left its ecosystem in recent months. In February alone, $485 million flowed out of the network, with investors shifting funds to Ethereum, Arbitrum, and Binance Smart Chain instead. The recent collapse of the LIBRA meme coin, which was promoted by Argentina’s President Javier Milei before turning into a rug pull, has further damaged confidence in Solana-based assets.
At the same time, long-term fundamentals remain strong, with Solana continuing to attract institutional interest. While a spot Solana ETF is unlikely to be approved in the near term, analysts believe it could gain regulatory traction later this year.
Solana Prediction: A $100 Retest?
As SOL trades around $118.76, market participants are watching closely to see whether the support holds or if a further drop is on the cards. A break below this level could see Solana retesting $100, a psychological price point that could invite more buyers. For Solana investors, the latest Solana news update suggests that while the network faces headwinds, it’s still a platform with promising long-term fundamentals.
If SOL stays below $146.35, the downtrend could extend to $121.08, with a daily close below that level potentially accelerating the decline to $100.94. Source: SroshMayi on TradingView
On the flip side, if Solana manages to reclaim key resistance levels and regain investor confidence, a bounce toward $151 or even $185 could be possible in the coming weeks. As of now, Solana news on Reddit, X, and meme coin communities indicates a mix of pessimism and cautious optimism, with many hoping for a resurgence fueled by broader adoption and Solana’s technological advancements.
For now, the fate of Solana’s price will depend on broader market conditions, investor sentiment, and whether the network can overcome the liquidity concerns and meme coin fatigue that have contributed to its recent decline.
