The Solana (SOL) price has hit a new low, breaking below its critical support level of $77. This breakdown has left many investors and traders worried about the future of the cryptocurrency.
According to analyst Ali Martinez, the lack of significant demand below $77 could lead to potential targets of $53, $35, and $24. The loss of a key level like $77 often increases volatility, as fewer buyers step in to absorb selling pressure.
The technical indicators are also pointing towards a bearish trend, with SOL trading below every major moving average. The MACD indicator is showing growing downside momentum, and the Relative Strength Index (RSI) on the weekly chart sits at 32, which is typically read as a bearish signal when it falls below 40.
On-chain activity has also slowed down, with decentralized exchange volumes falling by 62% since January. Transaction volumes on the network have plateaued at around 700 million weekly, and analysts point to the slowdown in meme coin trading as a key factor.