Why is Solana (SOL) Price Crashing Today?

muthoni
Updated
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Why is Solana (SOL) Price Crashing Today?

Highlights

  • Solana price has dropped to a four-month low, causing speculation over whether a dip to $100 is likely.
  • Solana meme coin launchpad, PumpFun, is testing its own AMM liquidity pools that could aid SOL's price recovery if network activity rises.
  • If SOL drops below $155, a crash towards $112 is likely to occur in the near term.

Solana is dealing with renewed bearish momentum after its price dropped 6.5% today. SOL price trades today below $160, marking its lowest level since November 2024. With nearly $2 billion worth of SOL set to flood the market next week from the FTX bankruptcy auction, speculation is rife about whether Solana price could drop to $100. Amid the panic, PumpFun has launched a new Automated Market Maker (AMM). Can this new initiative prevent SOL price from crashing? 

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Can PumpFun’s AMM Prevent Bearish Solana Price Forecast to $100? 

PumpFun, a platform that makes it easy for creators to launch meme coins on Solana, is exploring launching its own Automated Market Maker (AMM) liquidity pools according to X user Trenchdiver

An AMM liquidity pool is a smart contract that will enable decentralized trading on the launchpad instead of users relying on external decentralized exchanges (DEXs) like Raydium. A beta version of the AMM liquidity pool is already live on the PumpFun website, featuring a swap interface for trading SOL against meme coins. 

Solana Price Analysis: Will PumpFun Prevent SOL From Crashing to $100?
PumpFum AMM Liquidity Pool

By launching its own liquidity pool, PumpFun will make meme coin trading faster, while potentially boosting its revenues. This initiative could also draw more users to the launchpad. 

PumpFun has been instrumental in driving activity and usage on the Solana blockchain. Therefore, if the AMM liquidity pool launches and boosts network usage, demand for Solana could rise, driving the price upward. 

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Will SOL Price Crash to $100 Amid Multiplying Bearish Pressure?

SOL price today sits at $159 after a 6% drop in 24 hours, which brings the monthly performance down by 35%. This massive correction has pushed investors to speculate if this crash is just the start and if Solana price could revisit the $100 psychological level.

According to analyst Crypto_McKenna on X, Solana is structurally bearish after losing support at the $167-$169 zone. Despite the extended downtrend, buying support remains weak, which could lead to a drop between $112 and $126. If the selling pressure does not recede, SOL could revisit $100.

Solana Price Analysis: Will PumpFun Prevent SOL From Crashing to $100?
SOL/USDT 1-day Chart

The analyst also anticipates that several headwinds could cause Solana price to drop even further below $100 and hit $79. This is due to the upcoming unlock of 11.2M SOL tokens next week. Additionally, the Bybit hacker is laundering stolen funds using Solana meme coins, which is causing negative market sentiment.  

This Solana (SOL) unlock is behind the bearish Solana price prediction and the lack of new buying activity. However, if the firms that bought these tokens from the FTX bankruptcy auction decide to hold and not sell, it could spark a recovery. 

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Will Long Traders Push Solana Price Down? 

The Solana liquidation map shows a large number of long liquidations below the current price. When long traders are liquidated, they are forced to sell to close their positions, which exerts more downward pressure on the price.

Solana Price Analysis: Will PumpFun Prevent SOL From Crashing to $100?
Solana Liquidation Map

Most of these long liquidations are saturated between the $120 and $160 price zones. Data from Coinglass shows that after Solana price fell to $160 on February 24, 2025, it triggered $21M in long liquidations, If these liquidations continue, it could accelerate the altcoin’s downtrend. 

What’s Next for SOL price? 

Solana is currently oversold after the Relative Strength Index plummeted to 30. The RSI has also been making a series of lower lows suggesting rising selling activity as buyers remain hesitant. While an oversold RSI hints at seller exhaustion, a trend reversal depends on the willingness of buyers to enter the market at the current price.

Solana Price Analysis: Can PumpFun Prevent SOL From Crashing to $100?
SOL/USDT: 1-day Chart

Solana price was also moving within a descending parallel channel, indicating a bearish continuation. For now, traders should watch out for a breakout of this channel to confirm a prolonged downtrend or a bullish reversal.

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Frequently Asked Questions (FAQs)

1. Can Solana price drop to $100 in the near term?

Solana price could drop to $100 is likely as buyers remain hesitant due to bearish news such as the upcoming 11.2M SOL unlock.

2. Can PumpFun's new initiative aid SOL's price recovery?

PumpFun is testing AMM liquidity pools to boost meme coin creation and trading on the Solana blockchain, which could boost SOL demand and a price recovery.

3. What is the next support level for Solana?

After dropping below the $167-$169 support zone, Solana's next support level lies at $155.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.