- Solana faces strong selling pressure, with key support at $125 under threat.
- Analysts warn of a 95% crash if bearish signals persist on the weekly chart.
- Declining network activity and TVL indicate weakening investor confidence in Solana’s ecosystem.
Solana’s SOL is facing intense selling pressure, pushing the price below $130. Traders remain cautious as the price struggles near a critical support level at $125. Since reaching a peak in January, Solana has been setting lower lows, mirroring the broader market downturn. Analysts warn that a deeper drop could follow if this support fails. Some even predict a worst-case scenario where Solana falls below $10.
Bearish Signals Raise Concerns
Crypto analyst Ali Martinez highlighted a bearish SuperTrend indicator on the weekly chart. The last time this signal appeared, Solana lost 95% of its value. A similar pattern now raises fears of another massive decline. On-chain data shows a sharp drop in Solana’s network activity. Daily transactions fell from 71,738 in January to 24,505 in March.
Lower engagement leads to reduced transaction fees, weakening overall demand. Total value locked (TVL) in Solana’s DeFi ecosystem also shows a steep decline. TVL dropped from $12.1 billion in January to $7 billion in mid-March. A 41% drop signals reduced confidence in decentralized applications built on Solana.
Futures Market Signals More Weakness
Solana’s futures market adds to the bearish outlook. Open interest (OI) in futures contracts has dropped from $8.57 billion in January to $4.03 billion. Many traders are closing positions, reducing exposure to further losses.
Negative funding rates suggest that short sellers remain dominant. Without a strong bullish catalyst, Solana may struggle to recover. A drop below $125 could push the price toward $100. If selling pressure increases, losses may extend much further.
While bulls will no doubt attempt a comeback, bearish signals dominate the market. Solana must hold key support levels to avoid a deeper correction. Watching these price zones will determine the next major move.
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