Solana Falls to Lowest Point in Five Months – Is a Decline Below $100 for SOL Imminent?

Solana has plummeted to a five-month low of $134, with its current 15% drop occurring as the cryptocurrency market experiences a 10% decline within 24 hours.

SOL has not been spared from the significant market selloff today, which is attributed to ETF outflows and tariffs that are undermining investor confidence.

This latest decline indicates that Solana has decreased by 20% over the past week and by 47% in the last month, while the altcoin still maintains a relatively modest 30% increase over the year.

Considering the favorable recent political and regulatory developments in the US, SOL is unlikely to remain down for an extended period, with its long-term price outlook remaining predominantly positive.

Solana Plummets to 5-Month Low – Will SOL Fall Below $100 Next?

There is no doubt that Solana, like 99% of cryptocurrencies in the market, has reached a significant low today, with its technical indicators suggesting a potential rebound in the near future.

The relative strength index (RSI) has dropped to 20 this morning, indicating extreme overselling conditions.

Source: TradingView

Additionally, SOL’s 30-period moving average (orange) has reached a new low compared to the 200-period moving average (blue), which again suggests a strong potential for recovery.

Crucially, it will be important to monitor whether the altcoin’s resistance level(s) can hold, with the next significant level being $130.

If its price experiences a decisive drop below this threshold, we could see another substantial decline for the token, potentially falling as low as $115 in the coming week.

One concerning factor is that its trading volume has surged to $11.6 billion today, marking its highest level in over two weeks as traders seek to exit.

4,209,559 #SOL (629,238,474 USD) transferred from unknown wallets to unknown wallets https://t.co/xYLipodt7S

— Whale Alert (@whale_alert) February 24, 2025

The last 24 hours have also seen several large SOL transfers, which may indicate that whales are liquidating their positions.

As for when the downturn will conclude, that remains uncertain.

Technical analysis suggests that a rebound should occur soon, while the fundamental outlook remains largely positive, despite the impending March 1 unlock and tariff-related issues.

Indeed, ETF outflows have been significant this month (approaching nearly $1 billion), but the crypto sector continues to benefit from positive developments.

The SEC recently dropped its case against Coinbase and continues to acknowledge several crypto ETF applications, including those for SOL ETFs.

Therefore, the Solana price is expected to recover over time, especially with the anticipated Firedancer upgrade on its native platform this year.

Tomorrow marks 1 month of running @jump_firedancer on @solana mainnet-beta! It’s so incredibly satisfying to see nearly every single block produced with 100% CU pic.twitter.com/CaGABctfNB

— gabriel.sol (Bored King) (@bape_SOL) February 12, 2025

It could potentially return to $150 by Q2 and reach $250 by H2.

Presale Tokens Can Help Navigate Bear Market

Despite the challenging outlook for most major tokens at present, there are still opportunities for substantial returns, provided one knows where to look.

One promising avenue is presale tokens, which under favorable conditions can experience significant surges upon their initial listing, especially after raising substantial amounts.

One of the largest presales currently taking place is for Solaxy (SOLX), a new Solana-based project that has raised over $23 million in its ongoing ICO.

The latest Solaxy Dev Update is here!
Bridging: Unlocking Liquidity
Seamless asset transfers are key for a functional L2. Our latest bridging progress:
Hyperlane integration tested—asset transfers between Solana L1 & our rollup (Solana devnet & native event).
… pic.twitter.com/xAXU1SH92L

— SOLAXY (@SOLAXYTOKEN) February 23, 2025

Solaxy is distinguished as Solana’s first true layer-two network, and as such, it will provide users with faster transaction speeds and lower fees.

It will also facilitate instant bridging between itself and Solana, along with future compatibility with other chains.

Its speed and scalability will position it as a significant hub for DeFi and meme tokens, which continue to attract interest within the Solana ecosystem.

Within its platform, SOLX will exclusively be used to pay for transaction fees, indicating a potential for high demand.

Traders can participate in the SOLX presale by visiting the Solaxy website and connecting a compatible wallet, such as Best Wallet or MetaMask.

SOLX is currently priced at $0.001646, but this may increase several times before the sale concludes, and could surge once the coin is listed.

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