The price of Solana (SOL) has faced severe declines recently, falling below the $100 mark and hitting its lowest point in 14 months.
The reason for this decline is mainly due to the negative trend that envelops the whole market, largely affected by prolonged trade tensions and fears of a financial crisis – what is often likened to "Black Monday" in 1987. Despite facing many challenges, it is still possible that SOL will soon stabilize and recover in the near future.
Solana investors remain steadfast
The number of active addresses on the Solana network has just hit a six-month low, currently recording about 4.44 million addresses with interactions. Compared to the peak of over 9 million addresses in January, this decline somewhat reflects the cautious sentiment of investors, as most tend to "sit on the sidelines" and wait for clearer recovery signals before returning to the market.
However, despite the downward price pressure, the loyal investor community of Solana remains steadfast in holding their assets, demonstrating confidence in the project's resilience. History has recorded several instances where Solana has rebounded strongly after deep correction phases – and this could be the psychological support that helps prevent a short-term decline.
The number of active addresses on the Solana network | Source: GlassnodeTechnically, the Relative Strength Index (RSI) of Solana is currently deep in the oversold territory, below the critical threshold of 30 – a signal that the downward momentum may have entered a weakening phase. This development is often an early warning of the potential for a short-term recovery. Historical facts have also repeatedly demonstrated that whenever the RSI of SOL touches the oversold region, the market often witnesses impressive rebounds.
The current RSI is sending a message that selling pressure may be dwindling, setting the stage for a potential recovery if global macro factors show signs of stabilizing. Although the global economic picture remains fraught with unpredictable variables, this indicator still suggests that Solana is approaching a technical bottom – where enthusiasm could return if market sentiment improves.
The relative strength index (RSI) of Solana | Source: TradingView## SOL price may soon recover
In today's trading, the Solana price plunged 20.8%, retreating to the $97 mark – losing the psychologically important $100 level for the first time in more than a year. This development reflects the negative sentiment that is prevailing in the market, causing many investors to become cautious and closely watch whether Solana can recover and re-establish the previous key support zones.
Despite recently witnessing a sharp decline, Solana's recovery prospects are not entirely extinguished. If the price can bounce back above the $100 mark and maintain this level as a solid support base, the bullish trend could be reignited. This could also be the time for investors to catch the bottom, as the current price has reached the lowest level in 14 months – an attractive opportunity to increase positions.
Daily SOL/USDT Chart | Source: TradingViewConversely, if the market context does not show positive changes, Solana is likely to continue facing selling pressure. A breakthrough below the key support level at $90 would invalidate optimistic scenarios and prolong the correction phase. At that point, the price of SOL may face the risk of dropping further, especially if the overall market's negative trend shows no signs of ending.
Disclaimer:This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.
Cboe proposed a Solana ETF fund, the likelihood of SEC approval increased to 70%
Grayscale filed an application with the SEC to list a Solana ETF on the NYSE.
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The price of Solana has broken below $100 for the first time in over a year – Is the downward trend still continuing?
The reason for this decline is mainly due to the negative trend that envelops the whole market, largely affected by prolonged trade tensions and fears of a financial crisis – what is often likened to "Black Monday" in 1987. Despite facing many challenges, it is still possible that SOL will soon stabilize and recover in the near future.
Solana investors remain steadfast
The number of active addresses on the Solana network has just hit a six-month low, currently recording about 4.44 million addresses with interactions. Compared to the peak of over 9 million addresses in January, this decline somewhat reflects the cautious sentiment of investors, as most tend to "sit on the sidelines" and wait for clearer recovery signals before returning to the market.
However, despite the downward price pressure, the loyal investor community of Solana remains steadfast in holding their assets, demonstrating confidence in the project's resilience. History has recorded several instances where Solana has rebounded strongly after deep correction phases – and this could be the psychological support that helps prevent a short-term decline.
The current RSI is sending a message that selling pressure may be dwindling, setting the stage for a potential recovery if global macro factors show signs of stabilizing. Although the global economic picture remains fraught with unpredictable variables, this indicator still suggests that Solana is approaching a technical bottom – where enthusiasm could return if market sentiment improves.
In today's trading, the Solana price plunged 20.8%, retreating to the $97 mark – losing the psychologically important $100 level for the first time in more than a year. This development reflects the negative sentiment that is prevailing in the market, causing many investors to become cautious and closely watch whether Solana can recover and re-establish the previous key support zones.
Despite recently witnessing a sharp decline, Solana's recovery prospects are not entirely extinguished. If the price can bounce back above the $100 mark and maintain this level as a solid support base, the bullish trend could be reignited. This could also be the time for investors to catch the bottom, as the current price has reached the lowest level in 14 months – an attractive opportunity to increase positions.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.
SN_Nour
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