SOL cryptocurrency price drops below $100, bulls face a tough challenge

Cryptocurrency price volatility has intensified, with Solana (SOL) becoming a recent focal point. Against the backdrop of increasing market downward pressure, SOL recently dropped to a recent low, currently trading at $79.97, with a 24-hour change of -4.63%. What hidden risk signals are behind this decline? When will the bulls regain control?

Solana’s Dilemma in a Bearish Market Environment

In recent weeks, the cryptocurrency market has experienced significant adjustments. Overall market sentiment has rapidly cooled, with the Crypto Fear & Greed Index falling into extreme fear territory, and the total market capitalization shrinking by hundreds of billions of dollars. In such an environment, altcoins are hit hardest, and Solana, as a key ecosystem project, has not been spared.

The current SOL price has fallen below the psychological $100 level, a critical point for bulls. According to on-chain data platform CoinGlass, Solana faced nearly $35.3 million in total liquidations in the past 24 hours, with approximately $24.7 million from long positions. This indicates that many traders holding long positions were forced to close their trades during the price decline.

Bearish Signals Abound: Imbalance Between Bulls and Bears

Beyond liquidation data, multiple negative indicators surrounding Solana reinforce bearish expectations. CoinGlass data shows that Solana’s open interest weighted funding rate has turned negative, currently at -0.0057%. This means short positions are paying funding fees to longs, reflecting that more traders are betting on further price declines rather than rebounds.

The long-to-short ratio further confirms this view. Currently, Solana’s long-short ratio is 0.94, below 1, indicating that bearish forces are dominant among market participants. This imbalance is not a positive sign for bulls seeking to regain control.

Worryingly, institutional activity also appears to be waning. According to SoSoValue, Solana spot ETF experienced a net outflow of $2.45 million last week, marking the first weekly withdrawal since its launch. If this outflow continues or accelerates, SOL could face more short-term downside pressure, as it often signals waning institutional interest.

Technical Analysis: Can the $100 Support Hold?

From a technical perspective, Solana previously traded within a range of $117 to $147, but a downward breakout broke this balance, indicating sellers have begun to take control. Subsequently, SOL price dropped to around $95.

Currently, SOL is battling the psychological support level at $100. If SOL closes below $100, it may continue to decline toward the $95 support zone. While buyers might defend around $95, a breakdown could see SOL further decline toward the $80 region.

To reverse the current situation, bulls need to push the price back above the moving averages. This would suggest that the previous dip below $117 was a false breakout, creating conditions for a subsequent rebound toward the $150 resistance level. However, given the weak market environment and technical signals, such a reversal would require some positive catalysts to support it.

Insights from Cryptocurrency Price Trends

Solana’s experience reflects the overall state of the current crypto market. In the absence of clear positive news, shifts in market risk sentiment can directly impact prices. Traders tracking crypto price movements should pay attention to multiple signals—technical, funding, and fundamental—rather than relying solely on a single indicator for decision-making.

For SOL investors, it is crucial to observe whether the key support levels at $100 and $95 can hold in the short term, as this will determine the next phase of the market trend.