Why Solana (SOL) might tumble 30% in the coming days

Are Solana (SOL) investors facing a potential 30% drop? Let's analyze technical signals and on-chain metrics to determine the future direction of this popular cryptocurrency.

Written by Charles Ledoux

Translated on April 9, 2025 at 14:38 by Sarah

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Solana : 10% Surge or 30% Drop ?

At the time of writing, Solana (SOL) is trading around $107.50, after surging by over 10% from $97 within 24 hours. While this recent increase has sparked enthusiasm, technical analysis and on-chain data suggest that SOL may face significant short-term decline.

Solana broke its crucial horizontal support of $114 on April 6, 2025, a level that historically acted as a price reversal or bounce point. However, this time, the pattern failed, paving the way for further decline.

Indeed, if SOL remains below $114, historical trends indicate a potential drop of 30%, which could bring it back to its next support level at $77. Currently, SOL is trading below the 200-day moving average on the daily chart, signaling a strong downtrend with continuous downward momentum.

If Solana fails to reach $135, it will continue its drop to $80-77.

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Technical Analysis and On-Chain Metrics: Bearish Signals Accumulating

On-chain metrics also confirm the bearish sentiment among traders. Coinglass data shows that traders hold more short positions than long positions in the market, with $85 million in short positions built at the $113.10 resistance level. This suggests that bears currently dominate this asset.

In summary, Solana could see an increase in the coming days up to $120 to liquidate shorts and then trend back downwards.

However, these short and long positions are likely to be liquidated once the price significantly moves in either direction. Hence, the support level of $77 becomes a crucial point to monitor for Solana investors, as a fallback to this level would indicate a major shift in project dynamics.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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DISCLAIMER

This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.

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