Solana price has entered the new month under pressure after losing a level that had acted as a psychological anchor for much of last year. The token’s drop below $100 diverted market attention from recovery narratives to damage control.
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Traders are now closely watching whether upcoming support levels can halt a decline that has accelerated amid overall cryptocurrency market weakness. Although network activity and institutional interest continue to attract attention, short-term price movements have clearly shifted towards a bearish trend.
SOL's price trends to the downside on the daily chart. Source: SOLUSD on Tradingview
Solana Price Surpasses $100 as Selling Pressure Mounts
Before recovering to the current level of $102, Solana price fell to around $98, marking its lowest point in almost ten months and extending losses to almost 20% over the past week and approximately 25% over the past month.
Trading activity has slowed as prices have fallen, with both spot volume and derivatives share declining. CoinGlass data shows a drop in open interest, suggesting that long positions are unwinding rather than an increase in aggressive short selling.
The measure has not occurred in isolation. A wave of market-wide selloffs over the weekend, combined with tight liquidity, amplified downward moves in major cryptocurrencies.
Macroeconomic concerns have also weighed on sentiment after renewed expectations for tighter monetary policy in the United States following President Trump’s appointment of Kevin Warsh as the next chairman of the Federal Reserve, a choice seen as a tough one by markets.
Technical outlook points to lower support levels
From a technical point of view, Solana’s structure has been weakened. The break below $100 confirmed a pattern of lower highs and lower lows, with Solana price oscillating well below its declining short-term moving averages.
The Bollinger Bands are widening and Solana price action remains near the lower band, suggesting that the bearish momentum remains dominant rather than stabilizing.
Momentum indicators underline the pressure. The daily relative strength index is around 25, which puts SOL in oversold territory. While this increases the likelihood of short-term bounces, it alone does not indicate a trend change.
On the downside, traders are closely watching the $95 zone, followed by a broader $92 to $90 zone. Below that, $85 and $80 stand out as larger historical support levels. Some pattern and chain analysis suggests that if selling accelerates, thinner support could expose deeper zones later in the year.
Fundamentals remain active despite weak price action
Despite the bearish price forecast, Solana’s underlying network metrics remain comparatively strong. January’s transaction count increased sharply and recent data shows continued growth in on-chain activity and stablecoin usage.
Institutional interest has been mixed but not absent: early January capital inflows were offset by more recent outflows from the Solana ETF.
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Currently, it dominates the technical landscape. Solana would need to reclaim $110 and hold above the key moving averages to alleviate bearish pressure. Until that happens, rallies are likely to be viewed as corrective moves within a broader downtrend, leaving the next support levels as the immediate test of the market.
ChatGPT cover image, SOLUSD chart from Tradingview