A year after hitting its all-time high, Solana (SOL) is now trading 54.3% below its $293 peak from 2025, as it tries to hold a critical support zone. Analysts warn that if the price fails to recover its recent losses, the altcoin could face a steeper decline.
Solana broke below key support on Sunday, dropping 8% to a two-week low of $130. Since falling below the $200 psychological level in late October, the cryptocurrency has struggled to maintain bullish momentum, largely moving between $115 and $145 over the past three months.
While a rally at the start of the year helped SOL break out of its multi-month downtrend and briefly push above the key $145 resistance last week, Sunday’s market pullback has pushed it back below important levels.
Market observer BitGuru noted that Solana has “swept liquidity into a strong demand zone after a clean structure breakdown.” He suggested that if the price can hold current support levels, it could trigger a sharp rebound toward previous highs.
However, analyst Man of Bitcoin pointed out that SOL has broken below its two-week ascending trendline, which had supported its 17% rise from the start of the year. The price also dropped below $136, a level that had provided consistent support after the recent breakout. He identified short-term support between $129 and $136, warning that a sustained break below this zone could lead to further downside, potentially pushing SOL down by 25% toward the $100 area.
Other analysts are highlighting a larger bearish pattern on Solana’s weekly chart—a two-year Head and Shoulders formation that has been developing since 2024. The left shoulder formed during the Q1-Q2 2024 rally, the head during the late 2024 and early 2025 run to its all-time high, and the right shoulder after the Q3 2025 rally and Q4 correction. The neckline sits around $120.
Trader Slashology warned that Solana is “looking bad here” and that a breakdown below the neckline could lead to a 35%-40% drop toward $75-$80.
On a more optimistic note, market observer Crypto Curb compared SOL’s current pattern to the S&P 500’s movement between 2009 and 2011. The S&P 500 displayed a similar structure but ultimately invalidated the bearish pattern by bouncing from the neckline and breaking to new highs. He suggested Solana could follow a similar path if it rebounds from current levels.
As of now, Solana is trading at $134, down 5.6% on the day.
Frequently Asked Questions
FAQs Solanas Potential Downturn the 100 Level
BeginnerLevel Questions
1 What does a key rejection mean in crypto trading
A key rejection means the price tried to break through an important level of resistance but failed and fell back down Its like hitting a ceiling and bouncing lower
2 Why is 100 a significant price level for Solana
100 is a major psychological and technical support level Its a round number that many traders watch If the price falls below and stays below 100 it could signal a deeper loss of confidence and trigger more selling
3 What are the main reasons Solanas price might be falling
Potential reasons include broader market downturns negative sentiment from failing to break a key resistance level network congestion issues resurfacing or a general shift in investor risk appetite away from cryptocurrencies
4 Im new to this Should I buy SOL if it hits 100
This is a personal investment decision While some see it as a potential discount buying during a downtrend is risky Never invest more than you can afford to lose and consider doing your own research or speaking with a financial advisor
5 What is support and resistance
Support A price level where buying interest is historically strong enough to prevent the price from falling further
Resistance A price level where selling pressure is historically strong enough to prevent the price from rising further
Advanced Practical Questions
6 What specific technical indicator or event triggered this key rejection
Analysts typically point to a rejection from a major moving average or a previous price high that SOL could not sustain It often coincides with high trading volume on the down move confirming the selling pressure
7 Beyond 100 what are the next major support levels to watch
Key levels below 100 often include
85 A previous consolidation zone from late 2023
70 A major swing low from earlier in 2024
5060 A crucial longterm support area from the 2023 bull run inception