SOL price has declined 24.5% over five consecutive days, reaching seven-month lows around $115
Short traders have deployed $730 million in leverage against SOL, vastly outpacing the $93.6 million in long positions
Key support levels at $125 and $120 were broken over the weekend, triggering significant liquidations
The sell-off follows both macroeconomic concerns and Solana-specific factors including the FTX token unlock
Without increased demand, SOL could potentially drop further to $99
Solana’s price has taken a sharp downturn, dropping to seven-month lows amid heavy selling pressure. The cryptocurrency has faced a perfect storm of challenges, combining broader market concerns with specific issues tied to the Solana ecosystem.
SOL began its downward movement when it failed to clear the $155 resistance level. This triggered a fresh decline that mirrored similar drops in Bitcoin and Ethereum. The downward momentum picked up speed as Solana broke below several key support levels.
The price dipped below $140 and $132 support zones. It continued its decline past the $120 mark before finding a temporary low at $114. Since then, SOL has made modest recovery attempts, climbing back above the $120 level.
Technical indicators paint a bearish picture for Solana. The cryptocurrency is trading below both $130 and its 100-hourly simple moving average. A short-term rising channel has formed with support at $124 on the hourly chart.
On the upside, Solana faces resistance near $128. The next major hurdle stands at $130. The $132 level represents the main resistance point, aligning with the 50% Fibonacci retracement level of the recent downward move.
If SOL manages to close above the $132 resistance zone, it could set the stage for a steady increase. The next key resistance would then be $140. Further gains might push the price toward the $150 level.
However, failure to rise above $132 could trigger another decline. Initial support sits near $124. The first major support level is around $120. Breaking below $120 might send SOL toward the $114 zone again.
The recent price action shows SOL has lost 24.5% over five consecutive days. This marks the worst decline in months for the cryptocurrency. Bollinger Bands are expanding downward, with SOL’s price firmly below the midline at $149.13.
Reasons for Decline
Several factors have contributed to Solana’s steep decline. Macroeconomic concerns, including Trump’s trade tariffs and global inflation fears, have weighed on the broader market. The U.S. Non-Farm Payroll data released on Friday sparked another round of sell-offs.
Solana has also faced internal bearish catalysts. The limited price reaction to Trump’s crypto strategic reserve announcement on March 2 failed to provide lasting support. More importantly, the massive token unlock from the FTX estate since March 1 has increased short-term market supply.
Derivatives market data shows a strong bearish sentiment. Short traders have deployed over $732 million in leverage on SOL positions in the past seven days. This vastly outpaces the $93.6 million in active long positions, highlighting a decisive shift in market sentiment.
Long traders have closed their positions in large numbers. SOL traders surrendered over $174 million in long contracts as the price broke below the critical $125 and $120 support levels over the weekend. These liquidations weakened buying support and accelerated the drop.
The Relative Strength Index (RSI) hovers at 32.66, approaching but not yet reaching oversold conditions. The RSI’s downward trajectory suggests sustained selling pressure, particularly as it remains below the signal line at 35.91.
Without a meaningful resurgence in demand, Solana appears poised to slip further toward $99 before encountering the next significant support cluster. Any recovery would require bulls to reclaim the $125 level, which could potentially trigger a short squeeze targeting $149.13.
The steep price decline has left many investors wondering whether to hold or sell their SOL positions. With technical indicators leaning bearish and significant short leverage in play, the short-term outlook remains challenging for Solana.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
