SOL Price Prediction: Why Solana Price Is Suddenly Crashing Today

Solana Price Prediction: Will SOL Crash Below $90 or Rebound Strong?

Solana (SOL) is going through a volatile market period, with its token price dipping below the crucial $100 mark for the first time since February 2024. After a steep 17% decline in the past 24 hours, the token has now seen more than 65% losses from the mid-January peak. Such a steep selloff has investors and analysts worried, and the question on everyone's lips is: Is Solana dropping below $90 this week?

Why Is Solana’s Price Falling?

Solana's recent price fall is caused by a perfect storm of macroeconomic factors and bearish sentiment that is sweeping the crypto universe. Most of the fear is being driven by the rising trade tensions, and President Trump's recent tariff announcements have ushered in the fear of 1987's "Black Monday" crash. As risk assets fall back, the plunge is being suffered by the altcoin.

As of press time, SOL is valued at approximately $100, based on CoinMarketCap data. The 24-hour trading volume has increased more than 312% to $6.69 billion—an indicator of aggressive sell-side activity. Coinglass data also indicates that more than $58.48 million in long positions were closed in the last day alone, with the token being the second-most-liquidated altcoin during the crash.

Source: CoinMarketCap

Whale Activity and Investor Sentiment

Despite the panic selloff, on-chain statistics show a glimmer of confidence from the large holders. One Solana whale has staked 71,318 SOL (over $7.63 million) with long-term conviction in the project, even when it is sitting at a net loss.

As per Glassnode, active accounts on Solana have declined to a 6-month low of 4.44 million from a high point of 9 million back in January. While this represents lowered network activity, it also suggests investors are waiting patiently for a rebound before coming back in—a good sign of potential support.

Will SOL Crash Below $90?

Noted crypto market analyst Jason Pizzino has issued a warning of a deeper upcoming correction for SOL. Based on his technical analysis, if the current downtrend persists, the altcoin may drop below $90, setting the stage for a drop to $80—and even $60 in the event of a further increase in selling pressure.

This bearish forecast is added to by future token unlocks. Tokenomist statistics indicate that 465,000 SOL (over $50 million) will be unlocked this week. This would greatly enhance short-term sell pressure, particularly during an already weak market period.

Technical Analysis: Bearish Breakdown in Play

According to crypto analyst, Ali Martinez, technically, the token has fallen below a significant horizontal support at $125, which confirms a bearish breakout from an old ascending wedge pattern. Traditional chart analysis indicates that the downside target may be between $40 and $60 if the breakdown completes its entire measured move.

The Crypto Fear and Greed Index has also plummeted to 23 (Extreme Fear)—a long-time bearish signal that means traders are extremely risk-averse and unwilling to buy the dip.

Is There Hope for a Rebound?

Where there is downward pressure, however, all is not lost for Solana. As long as SOL can re-cap the $100 level and flip it into a support, positive momentum can reignite. Previously, the token has shown vigor following big pullbacks, and with continued institutional demand and network growth, near-term bounce-back remains an option.

Yet, the road to recovery depends on a wider change in market sentiment. In the absence of a turn in global macroeconomic conditions and better risk appetite, Solana can remain under downward pressure in the short term.

What’s Next for Solana?

Solana's current correction is indeed steep but not unexpected in the broader market selloff. While short-term predictions indicate a potential crash to below $90, long-term fundamentals and investor perception remain robust.

Meanwhile, investors and traders must monitor important levels—specifically the $90 support and the $100 psychological resistance. If Solana fails to regain higher ground in the near future, it could fall back to its mid-2023 lows of about $60.