Solana (SOL) has taken a steep dive, falling over 20% in recent trading sessions and slipping below the psychologically critical $100 threshold for the first time in 14 months. The plunge marks a troubling chapter for the one-time Ethereum rival, sparking investor concerns as network activity cools and technical signals flash red.
At press time, Solana is trading around $97, a massive drop from its recent highs, with price charts reflecting intense bearish pressure amid broader crypto market weakness. Bitcoin and Ethereum have also faced downside pressure, compounding the negative sentiment.
 SOL Enters Bearish Territory as Key Support Levels Collapse
Solana’s downturn began after breaking below major support levels at $122, $115, and later $112. Technical analysts point to a breakdown of a contracting triangle near the $118 level on the hourly SOL/USD chart. From there, the asset freefell, touching the $102 level before attempting a mild consolidation.
Currently, SOL is trading well below the 23.6% Fibonacci retracement level from its recent $121 high, a sign that bears are in control. The price remains under both the $105 resistance level and the 100-hour simple moving average, reinforcing the ongoing bearish momentum.
Key support levels to watch are now sitting at $100, $92, and $84. A failure to hold above these zones could open the door to even deeper losses in the near term.
 RSI Signals Oversold—Is a Rebound Imminent?
Amid the plunge, Solana’s Relative Strength Index (RSI) has dropped below 30, signaling that the token is in oversold territory. Historically, such technical conditions often precede a short-term rebound or relief rally, though confirmation will depend on volume support and market sentiment.
Analysts are watching the $105 resistance level, which must be cleared before SOL can even consider a sustainable recovery. A further push toward $112 and $116 would be required to flip the trend in bulls’ favor.
 Solana Active Addresses Drop to 6-Month Low
Adding to investor concern is the continued decline in Solana’s network activity. Data from Glassnode shows active addresses on the blockchain have slipped to 4.44 million, the lowest point in six months—down sharply from January’s peak of 9 million.
This drop mirrors fading retail interest and points to a wait-and-see approach from many users, who may be holding off until market conditions stabilize. Analysts believe that while the decline appears negative, it could also reflect reduced speculative activity, a common feature during market corrections.
 Institutional Interest and Long-Term Support Still Intact
Despite the turbulence, some long-term holders are showing resilience. Many investors remain committed, with holding behavior steady, even as short-term traders exit their positions. This base of support could serve as a shock absorber against further downside pressure.
Meanwhile, recent moves by major players like CME’s launch of SOL futures and PayPal’s integration of Solana into its crypto platform signal that institutional and fintech confidence in Solana remains strong, even amid price headwinds.
