Solana is in freefall with a potential crash below $100 as network activity declines. Could this lead to the SOL price testing of $60?
Amid the broader market uncertainty, Solana’s price trend has maintained its downward trajectory. With an intraday pullback of 3.07%, Solana is currently trading at $124.
Additionally, declining conditions on the Solana network raise concerns about a more severe correction in SOL prices. Will this cause the price to break the $100 psychological mark?
Declining Solana Prices Warn $100 Breakdown
On the daily chart, SOL’s price trend is under strong bearish pressure. Since its all-time high of $295, Solana has experienced a nearly 60% drop.
The pullback phase has now extended over 60 days, and the bearish trend suggests a high likelihood of SOL crashing below the $100 psychological level.
A recovery attempt last week from a swing low of $112 saw the price peak at $137 on Sunday. However, this week has brought a fresh wave of bearish momentum. As a result, SOL is likely to create another lower low and test the S1 pivot support level at $104.30.
With the bearish trend gaining momentum, the $100 psychological support level is at risk of breaking down. In this scenario, the S2 pivot support level at $60 becomes the primary bearish target, indicating a downside potential of nearly 50%.
Nevertheless, a bullish divergence in the MACD and the positive crossover between the MACD and signal lines offers a glimmer of hope. This could suggest a potential recovery if the broader market stabilizes.
If that happens, the center pivot level at $169.20 may serve as the next immediate price target.
Solana Network Activity Slows Down
As the SOL price trend witnesses a spike of bearish influence, the network witnesses a massive decline in activity. The number of active addresses on the Solana network has dropped from 5.69 million to 2.76 million since January 2025.
This represents a more than 50% decline over the past 60 days. Additionally, the number of new addresses on the Solana network has fallen to 2.6 million. With the rate of unique first-time signers decreasing, demand for the SOL token is unlikely to increase.
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