Solana Price Likely to Crash 20% as Ethereum Stabilizes Above Key Support

Solana price has retraced 14% from the recent peak of $295, to hit $255 on Saturday. Key market indicators suggest SOL could witness further downsizing as Ethereum’s makes a gradual resurgence after Vitalik Buterin announced the team’s intent to stop selling ETH.

With SOL recently struggling to hold momentum as selling pressure builds, Ethereum (ETH) stabilizes above the $3,100-$3,300 support zone. This contrasting price action highlights the growing divergence between the two major Layer-1 competitors, as Ethereum’s looks poised to regain market dominance.

Solana Price Weakens as Ethereum Stabilizes

Solana (SOL) continues to show bearish price action as Ethereum’s (ETH) stability amid volatile market trends suggests traders are selectively navigating the markets.

Analyzing the Ethereum price forecast chart , ETH price is consolidating above a key support zone between $3,050 and $3,208.

This support is reinforced by the 200-day Moving Average (MA), a critical technical indicator for gauging long-term trends.

According to the TradingView chart above, ETH’s Relative Strength Index (RSI) hovers near 47.57, signaling neutral momentum and potential for accumulation. Meanwhile, the MACD histogram shows mild bearish divergence but suggests weakening downside pressure, as recent bars narrow toward the zero line.

These factors point to ETH price stabilizing, creating a subdued environment for correlated altcoins like Solana.
SOL, by contrast, lacks strong institutional interest evident in Ethereum’s support zones.

With ETH finding buyers near its 200-day MA and key horizontal levels, SOL’s price weakness could signal a flight to safety toward larger-cap assets. If Ethereum continues to consolidate above $3,200, it could exert indirect resistance on SOL, limiting its ability to recover in the short term. Solana bulls must reclaim lost support zones to shift sentiment to the next bullish phase.

Solana Price Forecast: SOL To Crash 20% As Selling Pressure Builds

Looking at the near-term Solana price forecast, current market dynamics indicate a bearish outlook, with a potential 20% decline as selling pressure intensifies.

As seen in the chart below, SOL price has recently breached key support levels, including the 50-day Simple Moving Average (SMA) at $232.51 and the 200-day SMA at $168.88, signaling weakening demand.

The Swing Failure Pattern (SFP) due to excessive selling further confirms the bearish sentiment, as buyers failed to sustain upward momentum, leading to a breakdown.

The price is currently testing the range midpoint at $232.51, which now acts as resistance.

The Relative Strength Index (RSI) and other momentum indicators are likely in oversold territory, but without significant buying interest, a rebound seems unlikely. The demand zone around $168.88, aligned with the 200-day SMA, is the next critical support level. If this level fails to hold, SOL price could rapidly plunge toward $169.00, aligning with the 20% crash forecast.

Frequently Asked Questions (FAQs)

1. Why is Solana price going down?

Solana's price is declining due to excessive selling pressure, breaching key support levels like the 50-day and 200-day SMAs, and a Swing Failure Pattern indicating weakened buyer momentum.

2. How does Ethereum's stability affect Solana?

Ethereum's stability above key support zones contrasts with Solana's weakness, suggesting a potential shift in trader preference towards larger-cap assets like ETH, which could further pressure SOL

3. What are the key support levels for Solana?

Key support levels for Solana include the 50-day SMA at $232 and the 200-day SMA at $168. A break below these levels could lead to further downside.

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ibrahim

Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.

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