Solana Price Drop Could Push It Below $110 After 38% Crash

Key Points

• Solana Price Drop Could Push It Below $110 After 38% Crash
• Solana has dropped 38% in the past month, falling below $120.
• Key indicators show strong bearish momentum, with resistance at $130-$135.
• If selling pressure continues, SOL could drop below $110 soon.
• A breakout above resistance may trigger a recovery, but risks remain.

Solana (SOL) is struggling under intense selling pressure, with its price dropping below $120 for the first time since February 2024. Over the past 30 days, SOL has plunged by 38%, raising concerns among investors about further downside.

$SOL is weak.

Obviously due to the fact that Over $6b was extracted over the past few months thanks to all the hyped launches by politicians, scammers & PumpFun.

SOL fails to hold 160-155 we might go down to the lows of $120.

Not looking good. pic.twitter.com/qhdQcORFhr

— Big Wiz 🧸📈💰 (@WisdomMatic) February 18, 2025

The broader crypto market has also faced turbulence. DeFi total value locked (TVL) recently dropped by $45 billion, highlighting weak sentiment across decentralized finance platforms. Read more about the DeFi TVL drop here.

Now, Solana is at a critical juncture. If the bearish momentum continues, the price could soon test support at $110 or lower. However, if bulls regain control, a breakout above $130-$135 could signal a potential recovery.

WARNING 🚨 SOLANA HAS LOST SUPPORT

Potential Support lays at $125 pic.twitter.com/mP95Dkzf72

— That Martini Guy ₿ (@MartiniGuyYT) February 24, 2025

Indicators Suggest Further Decline for Solana

Ichimoku Cloud Points to a Bearish Outlook

One of the strongest bearish signals comes from the Ichimoku Cloud, a widely used technical indicator. SOL is currently trading below both the Tenkan-sen (conversion line) and Kijun-sen (base line), confirming that the short-term trend remains negative.

The red Ichimoku cloud ahead suggests that even if SOL attempts a rebound, it will likely face heavy resistance around $130-$135. If Solana fails to break through this zone, the downtrend is expected to continue.

SOL Ichimoku Cloud. Source: TradingView – Techtoken

Interestingly, other major cryptocurrencies are also struggling. XRP, for example, saw a surge in active addresses despite a 10% price drop. Check out how XRP’s network activity is changing despite its price slump.

DMI Shows Sellers Still in Control

The Directional Movement Index (DMI) confirms that bears are in charge. The -DI (negative directional index) is currently at 32.2, significantly higher than the +DI (positive directional index) at 11.71.

Additionally, the ADX (Average Directional Index) has surged to 33.96, indicating that Solana’s downward trend is gaining strength. Typically, an ADX above 25 signals a strong trend, meaning the current bearish phase is unlikely to end soon.

SOL DMI. Source: TradingView – Techtoken

Unless the +DI surpasses -DI or the ADX starts declining, Solana will likely continue struggling to find support.

Can Solana Recover or Will It Drop Below $110?

The Exponential Moving Averages (EMA) further reinforce a bearish outlook. The short-term EMAs remain below long-term EMAs, suggesting that any rebound may be short-lived unless a trend reversal occurs.

$SOL – Still hasn’t found support after the blow off top. $120 to $130 should be about where majority of the timeline starts hating it again. Too many still confident in it so probably still lower. pic.twitter.com/Dn1LfyXLb0

— IncomeSharks (@IncomeSharks) February 24, 2025

Key levels to watch:

• Resistance at $130 and $135: A breakout above this zone could push SOL toward $152.9 and possibly $179.85.
• Support at $115 and $112: If these levels fail, SOL could drop below $110, marking its lowest point in months.

If Solana falls below $110, it could trigger further panic selling, similar to what happened when Michael Saylor announced plans to expand Bitcoin reserves. Check out how MicroStrategy’s Bitcoin strategy is impacting the market.

SOL Price Analysis. Source: TradingView – Techtoken

Market Sentiment Remains Uncertain

Broader market events are also impacting Solana’s performance. Recently, Elon Musk’s X suffered a major cyberattack, raising concerns about security risks in the digital economy. Read more about the X cyberattack and its impact on crypto.

If overall market sentiment remains weak, Solana could struggle to regain momentum. However, if Bitcoin and Ethereum stage a recovery, SOL could benefit from renewed investor confidence.

The next few days will be critical for Solana. Will it hold support or break below $110? Investors should closely monitor resistance levels and volume trends to gauge the next move.