Solana, the well-known crypto project once deemed as the Ethereum killer, has now witnessed a significant pullback, dropping under the $150 psychological support. The market price is down by 54% from its all-time high of $295.
Currently, Solana trades at a market value of $137 with a market cap of $68 billion. Over the past seven days, Solana has registered a pullback of 20% and has recently breached the $140 support. Will this declining trend in Solana break under the $100 psychological mark?
Solana Price Breaks Under $140
In the weekly chart, the Solana price trend reveals six consecutive bearish candles. This comes after the bullish failure to sustain above the $250 psychological support.
The declining trend has breached the 50-week EMA line and is now testing the bullish dominance near the 100-week EMA line. Furthermore, the downfall has reached the 61.80% Fibonacci level at $158.
Currently, with the lower price rejection from $131, Solana struggles to sustain above the 50% Fibonacci level at $129.90. When the declining trend, the weekly RSI line has breached under the halfway level, reflecting a surge in selling momentum.
As the momentum indicator nears the oversold boundary line, it triggers a sell signal. Furthermore, the closing price below the 100-week EMA line will increase the possibility of a bearish crossover and give another technical sell signal.
Based on the Fibonacci levels, closing below the 50% Fibonacci level will likely test the $66 at 23.60% level. On a bullish front, sustenance above $129 will likely retest the $158 horizontal level.
Solana Derivatives Witness Sharp Fluctuations
As liquidations in the crypto market dropped to $400 million compared to $1.5 billion yesterday, the Solana derivatives witnessed a minor recovery. The long-to-short ratio had recovered to 0.9849, reflecting an almost equal number of bullish and bearish positions.
However, the bears have a slightly stronger hand. The volume-weighted open interest has finally turned bullish after turning negative last night.
Currently, the funding rate stands at 0.0061%. The Solana open interest is down by 3.51 percent to $4.33 billion, with an almost equal number of bullish and bearish positions.
The positive funding rate hints at a divisible increase in traders holding long positions.
Analyst Warns A SOL Price Crash To $65
Despite the short-term optimism in the derivatives market, the transfer volume over the Solana network has dropped from $1.99 billion to $14.57 billion today. This is highlighted by the recent tweet by Ali Martinez, suggesting the potential slowdown over the Solana network.
#Solana $SOL appears to be forming a right-angled ascending broadening pattern. A break below $130 could open the door for a drop to $65! pic.twitter.com/iNPjrgbBNH
— Ali (@ali_charts) February 25, 2025
Furthermore, the analyst Haile Paye charts a right-angled ascending broadening pattern in the three-day Solana price chart. Currently, Solana is close to testing the local boundary line.
In case of a breakdown rally, the downfall in Solana is expected to reach the $65 mark.