Like its peer XRP, Solana (SOL), the sixth-largest cryptocurrency by market capitalization, is facing a crucial moment. Technical indicators suggest a potential 16% price drop, even as social media buzz around the asset reaches unprecedented levels.
Technical Breakdown: A Looming Drop?
Crypto analyst Ali Martinez has identified $125 as Solana’s most critical support level. A breach of this mark could pave the way for a further decline, with $105 emerging as the next major support level.
$125 is the most important support level for #Solana $SOL! pic.twitter.com/mY4MUxMcyL
— Ali (@ali_charts) March 28, 2025
Martinez’s analysis highlights an ascending wedge pattern, which has recently been broken to the downside—an ominous sign for SOL. Currently, the altcoin is retesting this breakdown level, and failure to reclaim the $145 region convincingly could cement the bearish trend, leading to a steeper drop.
Another crucial resistance is the 20-day Exponential Moving Average (EMA) at $136. To sustain upward momentum, SOL must flip this level into support. Otherwise, a downward spiral toward $105—or even $58 in a worst-case scenario—could become a reality.
Conversely, should SOL regain $145 and surge past $160, it would invalidate the bearish outlook and set the stage for a recovery toward the $200 mark.
At the time of writing, Solana is trading at $130.75, marking a 5.47% decline in the past 24 hours, according to CoinMarketCap. The Relative Strength Index (RSI) hovers around 44.60, suggesting bearish momentum, while Bollinger Bands indicate that further downside pressure could test the lower band at $118.
Social Sentiment vs. Market Reality
Despite the grim technical indicators, Solana’s social sentiment is at an all-time high. Data from Santiment reveals that institutional interest, influencer engagement, and technological advancements have propelled optimism on social media.
With major entities like GameStop embracing Bitcoin and BlackRock launching tokenized treasury funds on Solana, SOL has witnessed an 18:1 ratio of positive-to-negative commentary online.
However, history shows that extreme optimism can precede market corrections, as overleveraged traders may trigger profit-taking sell-offs. Just a month ago, Solana’s sentiment was at its lowest, following a downturn in the meme coin frenzy.
Also Read: Solana (SOL) Breaks Out: Is a Rally to $230 on the Horizon?
As SOL navigates this precarious phase, traders should remain cautious—whether a bullish reversal or a sharp downturn awaits will depend on how well key support levels hold.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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