Solana Nears Critical $100 Support as Bearish Momentum Builds

Solana (SOL) is teetering on a crucial psychological level, with prices hovering near $120 and threatening to drop below the $100 mark—a level not seen in months. The market’s growing bearish sentiment is evident, and SOL's failure to establish higher lows raises red flags about a potential prolonged downtrend.

Technical indicators are painting a grim picture. The Relative Strength Index (RSI) has slipped below 45, reflecting oversold conditions without showing bullish divergence, a key sign that often signals reversals. Meanwhile, SOL continues to trade below its short-term moving averages, including the 26 and 50 EMA, both of which remain in a downward slope. This inability to break above these resistance points adds to the mounting bearish pressure.

A more concerning development is the surge in bearish volume. Red volume bars have dominated recent trading sessions, signaling heightened sell-side aggression and limited buyer interest. Without signs of accumulation or strong support at current levels, bears appear firmly in control of price action.

If SOL fails to hold support at $110, the $100 level becomes a pivotal line in the sand. A decisive breakdown below $100 could trigger panic-selling, potentially accelerating a decline toward $90 or lower.

As market sentiment weakens, investors should exercise caution. Solana’s current trajectory suggests further downside unless strong buying interest emerges to counter the prevailing trend. Traders are advised to monitor key support zones closely as the asset inches closer to breaking its triple-digit price range.