Solana Faces Steep Decline as Key Support Levels Collapse

Solana (SOL) is under heavy selling pressure, alarming both short- and long-term investors. Since its failed breakout attempt in March, SOL has plunged over 60% from its local peak near $210. The most concerning development is its decisive breakdown below the critical $124–$130 support range—an area that previously served as a stronghold during market corrections.

With this structural support now invalidated, Solana enters uncharted territory. The next significant psychological level lies at $100, which has only offered a short-lived rebound. If SOL fails to hold this level, further downside toward $90 and $78 is likely. These zones acted as consolidation areas during the late 2023 rally, and losing them could trigger additional sharp declines.

Technical indicators are firmly bearish. SOL is trading below the 50-, 100-, and 200-day moving averages, underscoring strong downward momentum. Increased trading volume on red days suggests investor capitulation may already be underway. Meanwhile, Solana’s Relative Strength Index (RSI) is hovering around 35, signaling oversold conditions. However, this alone does not imply an immediate reversal, given the lack of positive catalysts.

Unless Solana reclaims and stabilizes above the $124 mark, bearish sentiment is likely to dominate. With broken supports and minimal structural backstops, the path of least resistance remains downward. Traders should remain cautious and wait for a confirmed recovery before reentering.