Solana's native token SOL has experienced a significant breakdown, falling below the critical $80 support level and trading heavily below $90 as bearish momentum accelerates. The price correction intensified after SOL failed to sustain gains above $90, leading to a drop below $85 and $82, entering a short-term bearish zone.
Technical indicators are flashing warning signs, with the Relative Strength Index (RSI) plunging to 25, indicating deeply oversold conditions. The hourly MACD is gaining pace in the bearish zone, and SOL is now trading below both the 100-hourly simple moving average and a bearish trend line forming with resistance at $81 on the SOL/USD chart.
At press time, Solana was trading at $78.33, down 2.7% over the past 24 hours. The token has dropped 45% in the last 30 days and is now roughly 73% below its January 2025 all-time high near $150. Trading activity has declined significantly, with 24-hour spot volume down 15% to $3.83 billion, while derivatives open interest dropped 3% to $4.91 billion.
The breakdown below $80 is technically significant as this level had acted as psychological support and formed the lower edge of a recent consolidation range. SOL now trades beneath both the 20-day and 50-day moving averages, positioned below the mid-point of the Bollinger Bands, which are widening—a sign that volatility is expanding.
Initial support on the downside is near the $76 zone, which coincides with the 61.8% Fibonacci retracement level of the upward wave from the $67.40 swing low to the $89.72 high. The first major support is near $72.50, with stronger support resting at $68. A break below $68 could send the price toward the $60 support zone in the near term.
Analysts point to several factors contributing to Solana's weakness, including the cooling of memecoin-driven speculative activity that fueled the late 2024 and early 2025 rally. Declining decentralized exchange volumes have also pressured the token, with January DEX volume at $117 billion—an improvement over previous months but still below October's $155 billion. As a high-beta asset, SOL tends to amplify broader market movements, falling more when sentiment changes due to its thinner liquidity compared to Bitcoin and Ethereum.
