News 
February 27, 2025 
4 min. 
Solana (SOL) is facing intense selling pressure, with its price dropping nearly 9% in a single day to trade at $138.29. If the decline continues, SOL could fall below $130 for the first time since September 2024.
Technical indicators suggest further downside risks, with a potential bearish crossover looming on SOL’s daily chart. If this pattern plays out, the cryptocurrency may see new lows below $100 in the coming weeks. However, traders are closely watching the $130 support level, which has historically been a key zone for price stabilization.
Key Technical Levels Signal a Critical Moment for Solana
These two profound analytical tools, the 50-day and the 200-day exponential moving averages (EMAs), have almost met the criteria for a death cross, a bearish indicator that has triggered additional price drops in the vast majority of cryptocurrencies in the past.
The worries deepen because Fibonacci retracement reasoning places SOL between the 0.5 and 0.618 levels, so-called the “golden zone.”. The $130 level has during Solana’s six months consolidation from the start of 2024, risen to claim the battle for support prominence, so it is a pretty important level for the traders.
In the event of SOL closing below $130, it has the possibility to trigger a deeper correction towards reestablishing the $120-$110 range where significant liquidity has been noted. Nonetheless, some analysts argue that Solana can float around $130 and $150 in the short term because it has traded plenty of volume in the past when it served as a support zone.
Market Sentiment Hits a Low—Is a Rebound on the Horizon?
Apart from technological concerns, Solana’s recent sell-off has impacted investor sentiment. According to crypto analyst Miles Deutscher, SOL is going through its “capitulation moment,” which means that sentiment has hit its all-time low for more than a year.
Indeed, data from Santiment, a blockchain analytic firm, also suggests that the majority of the investors are pessimistic when it comes to their outlook on the market for top cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana. While some traders are hopeful this results in mean reversion, most are skeptical about the negative outlook.
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This theory is also supported by a key indicator, which is the Solana Relative Strength Index (RSI), which has reached below 30 for the first time since June of 2023. Historically, such oversold measures are a clear indication of price bottoms where short-term reversal, also referred to as a relief rally, appears to be on the horizon.
Pending concerns over the unlock of the SOL token remain, which has some investors worried. However, estimates show that it is already priced in. If Solana holds the support at $130, traders may indeed witness recovery sometime in the following weeks. If not, Solana may further suffer and test crucial support areas of $120 and under which further enhances Solana’s bear sentiment.
