Solana (SOL) is going through tough times. On February 26, 2025, the altcoin stands at $139, after a drop of over 22% since Sunday. This marks the lowest level since September 2024 and a price drop of more than 55% since the all-time high in January. The broader crypto market is struggling with uncertainty, but Solana is taking extra hits due to extreme selling pressure and eroding confidence. What’s driving this downturn, and what’s in store for SOL? Let’s analyze the situation.
The crypto market is in a downward spiral, with Bitcoin below $90,000 and altcoins being hit even harder. Solana, once driven by memecoin speculation and a thriving ecosystem, now sees these same factors working against it. The Crypto Fear & Greed Index signals “extreme fear,” a sharp turnaround after months of optimism. Investors are losing confidence, and the bears are in control. Top analyst Jelle noted on X that SOL has lost crucial monthly and weekly support levels, increasing the risk of further declines. “I didn’t expect it to drop so hard when I sold my bags,” he wrote, pointing to a broken bullish structure.
SOL is now trading below key demand levels that previously supported the long-term upward trend. The drop below $140 confirms a bearish momentum, reinforced by a double top pattern that formed since January. Jelle’s analysis suggests that if SOL does not reclaim this zone, the next targets are around $125-$130, with a possible deeper correction to $100-$110 if the selling pressure continues. The bulls are struggling to hold $140 – a crucial psychological and technical boundary. A recovery above $150 would be a sign of strength, possibly rising to $185 for temporary relief, but the current sentiment makes that scenario unlikely without a strong catalyst.
The speculative memecoin craze, which fueled Solana’s rally in 2024, has collapsed. Platforms like Pump.fun are seeing declining activity, and the broader market is grappling with liquidity issues. This, combined with macroeconomic turmoil such as Trump’s tariffs, exacerbates the sell-off. Despite whale accumulation (26,430 BTC to OTC addresses on February 24), the inflow of short-term holders to exchanges remains high, indicating profit-taking and panic selling.
The coming days are crucial. If SOL closes above $140, a bounce to $150-$155 could follow, but without significant buying pressure, it remains vulnerable. A drop below $140 opens the door to $125-$130, with $100 as the worst-case scenario in the event of continued bearish strength.
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