Why Solana (SOL) Could Plunge to $75 ! Expert Insights Revealed

Solana (SOL) : Is an Inevitable Bear Market Approaching ?

The crypto market is going through a storm, and Solana (SOL) is not spared. With the price of SOL hovering around $116 after a 2.13% drop in 24 hours, analysts fear a collapse to $75, a level unseen since December 2023.

Paradoxically, a US company, Janover, recently acquired $4.6 million worth of SOL to bolster its cash reserves, following MicroStrategy’s example. But can this bullish momentum counter the bearish trend?

Janover’s announcement, a US-based software company, sparked a brief wave of optimism. By integrating $4.6 million of SOL into its treasury strategy through a $42 million fundraising, the company is betting on Solana’s long-term potential. In a bullish context, such news could have boosted prices. However, the current bear market is stifling this momentum.

Data shows that SOL broke the key support of $126 on March 29, turning this level into a resistance. Despite attempts to bounce back, the psychological barrier of $100 remains the last line of defense before a potential drop to $75. This level, tested in December 2023, had triggered a 78% surge in nine days. A repetition of this scenario seems compromised without a reversal in the overall market.

Technical Data : Persistent Selling Pressure

Technical indicators reinforce bearish concerns. The 12-hour Relative Strength Index (RSI) is flirting with the oversold zone, signaling buyers’ exhaustion. The Chaikin Money Flow (CMF), at -0.15, confirms a net capital outflow.

These signals reflect investors’ lack of conviction, exacerbated by macroeconomic uncertainties, including concerns over persistent inflation in the US and trade tensions related to tariffs.

On-chain data is not more reassuring. While the number of active addresses on Solana remains relatively stable, volumes on decentralized exchanges (DEX) have dropped by 24% in a week, indicating a capital rotation to other networks. This activity decline, particularly in the memecoin ecosystem, deprives SOL of a key driver of its past growth.

Despite this bleak picture, Solana holds strong advantages. Its scalability and low transaction costs continue to attract developers and users, especially in the DeFi and decentralized applications sector. Institutional adoption, as illustrated by Janover’s purchase, enhances the network’s credibility. Additionally, the potential integration of SOL into strategic digital asset reserves, as recently discussed in the US, could act as a medium-term catalyst.

A Drop to $75 or a Surprise Rebound?

As seen in one of our articles previously, Solana is facing resistance at $121 and appears to be in a rejection phase. If SOL fails to push through the 20-day moving average, it will likely target the demand zone at $80 at least.

Solana could rebound earlier, at $79, if the demand follows. Clearly, this will depend on Bitcoin, which is also facing a resistance at $83,000 and just dropped below $82,000 at the time of writing.

Therefore, watching today’s market opening will be crucial to determine the direction of the S&P 500 and other major assets.

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