Solana’s price has experienced a significant decline, slipping below a crucial support level and indicating heavily oversold conditions as traders reassess risk. The cryptocurrency’s breakdown below a key psychological level has reinforced its downtrend, with sellers maintaining control of the structure. According to recent data, Solana’s price has fallen 45% in the last 30 days, now trading at approximately 73% below its all-time high set in January 2025.
The memecoin-induced surge that fueled the previous rally has cooled, leading to a decrease in trading activity. At $3.83 billion, Solana’s 24-hour spot volume fell 15%, while open interest on the derivatives side decreased by 3% to $4.91 billion. This decline in open interest suggests that traders are closing positions instead of opening new aggressive bets, a common phenomenon in the later stages of a correction.
Why Solana is Struggling
Solana’s weakness stems from a sharp decline following the rally in late 2024 and early 2025. The influx of speculative capital into the ecosystem, driven by memecoin activity, including politically themed tokens, has dissipated. As a result, the structure has become weaker, with long positions unwinding and stop losses being triggered one after another, increasing selling pressure. As a high beta asset, Solana tends to reinforce broader market moves, often falling more sharply when sentiment changes but also outperforming in high-risk situations.
During times of uncertainty, traders often prefer greater liquidity, which could benefit more established markets like Bitcoin and Ethereum. In comparison, Solana’s lower liquidity may increase volatility when deleveraging. The decline in decentralized exchange volume has also put pressure on the token, with Solana’s DEX volume decreasing to $117 billion in January, according to DefiLlama. This represents a decline from the $155 billion recorded in October, indicating weakened ecosystem demand for SOL as speculative trading continues to wane.
Technical Analysis of Solana Price
The break below $80 is technically significant, as this level acted as psychological support and formed the bottom of a recent consolidation range. As it fell, the overall downtrend that began after the January peak near $150 strengthened. Solana is now trading below both the 20-day and 50-day moving averages, with the price also below the middle of the Bollinger Bands. The ranges themselves are widening, indicating increasing volatility.
Solana daily chart. Photo credit: crypto.news
Momentum indicators are consistent with the weakness, with the relative strength index (RSI) falling to 25, indicating deep oversold territory. Although a bullish divergence has not yet formed, such levels could precede short recovery rallies. The RSI remains below its signal average, suggesting sellers are still dominating short-term flows. For bullish momentum to resume, Solana would need to recapture the $80 mark with conviction, with a sustained move towards $90 being the next test.
The current market constellation reflects a market under pressure, with the $72-$70 area marking the next support zone. If this fails, attention will shift to the $65-$68 area, with stronger psychological support around $60. Whether this leads to capitulation or stabilizes to a base depends on how the price behaves around the $70 area. For more information and the latest updates on Solana’s price, visit https://crypto.news/solana-price-breaks-80-rsi-25-capitulation-2026/
