Solana is facing significant challenges as it struggles to maintain momentum amid declining network activity and market volatility. Once soaring to heights of $295.31, the cryptocurrency has plummeted by more than 58% since then, raising concerns about its future direction.
On March 18, 2025, Solana traded at $124, experiencing a 3.07% intraday pullback. This downward trend has persisted amid broader market uncertainty, causing analysts to speculate about the chance of SOL testing the psychological support level of $100. A price drop below this threshold could signal even darker days ahead for the cryptocurrency.
The drops have intensified over the past 60 days, with SOL’s price now hovering near $125—a significant horizontal support area. Last week, it briefly rallied from $112 to $137 but has since succumbed to bearish pressure, hinting at the possibility of creating another lower low.
"Since reaching its all-time high, SOL is possibly trading inside a descending wedge pattern," noted crypto analysts. This decreasing wedge typically signals potential bullish behavior moving forward, but not without uncertainty. If SOL does manage to break out of the wedge, it could rise to $183—a key resistance point established through various market metrics.
More concerning is the stark decline in network activity, which has seen active addresses on the Solana platform drop from 5.69 million to 2.76 million since January, representing more than 50% of the user base evaporated over the past two months. The number of new addresses creating activity on the network has also sunk, indicating dwindling interest and engagement with the platform.
Despite these setbacks, some analysts remain hopeful. A glimmer of optimism arises from bullish divergences seen on the MACD and Relative Strength Index (RSI), indicators often tied to trend reversals. These patterns provide potential for recovery, especially if the overall crypto market stabilizes.
While total volume for Solana futures on the Chicago Mercantile Exchange (CME) surged to $5 million following their launch on March 17, 2025, the overall negative sentiment may hinder substantial gains. The futures markets are typically seen as reflective of traders' anticipation, and the high volume could indicate renewed, albeit cautious, interest from traders.
The downward pressure has led to speculation about Solana testing lower levels, with the S1 pivot support level set at $104.30 and the more alarming S2 at $60, which would represent nearly 50% of the current price. A breach of the $100 mark could potentially trigger panic selling and accelerate the price drop.
Technical charts reveal the gravity of the situation: the SOL price trend is under strong bearish sentiment on multiple time frames. Analysts highlight this bearish divergence—an indicator often leading to downward trend reversals—as significantly worrying. "Bearish divergences on the weekly time frame are rare and often signify substantial changes," one analyst remarked.
Therefore, the whispered concerns of another drop below $100 are becoming louder, forcing investors to weigh the risks of maintaining their positions against the potential for recovery. The general consensus suggests avoiding any new buys until the situation materially improves.
Indicators hinting at potential relief rallies remain speculative as retesting prices near the $183 mark could offer traders some short-term gains. Still, such rallies will need to be approached with caution as the long-term outlook remains pessimistic.
Still, SOL is potentially trapped within its horizontal support area. Although the general outlook points toward new lows, short-term gains may not be out of the question, particularly if the market regains footing shortly.
Lastly, as analysts closely monitor trading patterns and price movements on Solana, many agree the current situation requires careful scrutiny. A potential breakdown below $100 is quickening fears of broader market corrections, placing Solana at the forefront of cryptocurrency fluctuations entering spring 2025.
The volatility of Solana’s price has drawn much attention, not just from devoted crypto enthusiasts, but also from wider financial markets, highlighting the need for cautious optimism and demand for substantial proof of potential reversals. The coming days and weeks may determine how this tale plays out.
