Is Solana Price Heading to $100 After Strong Market Corrections?

Solana has breached the $200 support level due to the recent collapse in Bitcoin below $100,000. Despite the stellar performance of this Ethereum-killer, the recent drop below a key level hints that a corrective phase may have begun. With bearish market structure and on-chain data suggesting further downside,  will Solana price drop to $100 amid sellling pressure?

Will Solana Price Break Below $100 After Losing Key Support?

Solana price has slipped below the $200 support level, raising concerns about a potential drop to $100. This comes as the crypto market experienced a widespread downturn following the recent Federal Open Market Committee (FOMC) meeting.

Recently, in the meeting the Federal Reserve reduced the interest rates by 25 basis points, which was anticipated by the market. But the uncertainty arose when the Federal Reserve Chair Jerome Powell mentioned that there may be no more rate cuts until 2025. This has put pressure on markets in general with cryptocurrencies not being an exception.

Bitcoin led the decline, while top altcoins followed suit, with meme coins among the hardest hit. Solana has seen a sharp drop, falling from a peak of $263 to the current levels of $180 decreasing by 30%. 

As of the time of reporting, the SOL price is hovering at $183, with a 12% loss in the past day, adding to the overall bearish sentiment.

The Relative Strength Index (RSI) remains below 40 signaling weakness and potentially oversold conditions. If the RSI trends toward 30, additional selling pressure may emerge.

With the ongoing market corrections, if bears gain momentum, the Solana price forecast suggests a potential drop to $160. A further breakdown could push the token lower to $140, and possibly $100. However, If bulls makes a comeback, Solana might experience a reversal, aiming for the $200 resistance level or higher.

On-Chain Data Reveals Risk of Correction for SOL

According to Coinglass data, the trading volume for SOL derivatives soared by 33% to reach $18 billion. However, open interest saw a significant drop, declining 16% to $4.41 billion. This divergence suggests a surge in trading activity while market participants adjusted their positions.

The liquidations’ data portray that the sentiment of the traders is not clear cut, and they are both long and short. SOL price volatility has been depicted by liquidation spikes, especially during strong price movements, which shows the high levels of derivative market volatility.

Solana has been experiencing bearish pressure as data from DefiLlama showed that the TVL had plummeted. The TVL declined from $11 billion to $7.93 billion, which means that within a day, there was a 10% reduction which is not very positive for investors.

The Solana price faces mounting pressure amid market-wide corrections and bearish signals. A drop to $100 is plausible if selling momentum persists, though a bullish reversal remains possible with stronger support.