Solana’s price entered the modern month under pressure after losing a level that acted as a psychological anchor for much of last year. The token’s drop below $100 shifted the market’s focus away from the recovery narrative and toward damage control.

Traders are now closely watching whether upcoming support levels can halt a decline that has accelerated amid overall cryptocurrency market weakness. While network activity and institutional interests continue to attract attention, short-term price movements have clearly turned downward.

SOL's price trends to the downside on the daily chart. Source: SOLUSD on Tradingview

Solana is trading above $100 as selling pressure increases

Before recovering to its current level of $102, Solana’s price dropped to around $98, hitting a nearly ten-month low and increasing losses to almost 20% over the past week and around 25% over the past month.

Trading activity weakened as prices fell, with both spot trading volume and the share of derivatives falling. Data from CoinGlass shows a decline in open interest, suggesting long positions are being liquidated rather than a surge in aggressive tiny selling.

This move didn’t happen alone. A wave of market-wide liquidations over the weekend, coupled with tight liquidity, amplified bearish moves in major cryptocurrencies.

Macroeconomic concerns also weighed on sentiment after renewed expectations for tighter U.S. monetary policy following President Trump’s nomination of Kevin Warsh as the next Federal Reserve chairman, which markets see as hawkish.

The technical outlook points to lower levels of support

From a technical point of view, Solana structure weakened. A break below $100 confirmed a series of lower highs and lower lows, with Solana’s price hovering well below falling short-term moving averages.

Bollinger Bands are widening and Solana’s price action remains near the lower band, suggesting that downside momentum remains dominant rather than stabilizing.

Momentum indicators highlight the pressure. The daily relative strength index is hovering around 25, which puts SOL deep in oversold territory. While this increases the likelihood of short-term bounces, it does not in itself indicate a trend reversal.

On the other hand, traders are keeping a close eye on the $95 area and then the broader $92-$90 zone. Below this level, $85 and $80 stand out as higher historical support levels. Some on-chain and pattern analysis suggests that if selling accelerates, thinner support could expose deeper zones later in the year.

Fundamentals remain vigorous despite faint price action

Despite the bearish price forecast, Solana’s underlying asset network metrics remain relatively robust. Transaction volumes surged in January, with the latest data showing continued growth in on-chain activity and stablecoin usage.

Institutional interest was mixed but not absent, with earlier January inflows offset by more recent outflows from the Solana ETF.

Currently, the technical image dominates. Solana would need to regain $110 and stay above key moving averages to ease bearish pressure. Until this happens, rallies will likely be viewed as corrective moves within a broader downtrend, leaving subsequent support levels as a direct test of the market.

Cover photo from ChatGPT, SOLUSD chart from Tradingview