Solana (SOL) faces renewed selling pressure after plummeting nearly 20% in recent sessions. This move, occurring in early November, tests a long-term ascending trendline. The Solana price technical analysis suggests the correction may not be over, with warnings of a potential drop below $100.
Currently, SOL is trading around $156, after hitting a recent low of $148. This drop represents a value loss of nearly 20% since the beginning of the month. The weekly chart shows the token dangerously hovering above a key ascending trendline. This structure has repeatedly served as a “lifeline” for Solana’s medium-term uptrend since 2023.
However, the warning from technical analysts is clear. A prominent analyst on the X platform (formerly Twitter) noted that a break of this multi-year trendline could trigger an additional 30% to 40% drop. This decline would drag SOL below the psychological support level of $100. Such an event could unleash a new wave of panic selling among investors.
Can Strong On-Chain Data Save Solana from a Technical Collapse?
The Solana price technical analysis also depends heavily on Bitcoin. Analysts agree that SOL’s recovery is tied to BTC stabilizing above its own key support near $95,000. Meanwhile, an SOL/USD liquidity heatmap shows the price has already swept liquidity below the $180 zone. Now, dense liquidity is accumulating as resistance in the $200-$220 range. This volatility is already affecting institutional portfolios. Forward Industries, Inc. (FORD) reported $382 million in unrealized losses on its SOL holdings.
On the other hand, the on-chain indicators for the Solana blockchain remain robust. The network generates $8.5 million in weekly block value. Its DEX volume ($29 billion) surpasses Ethereum’s, and it maintains 15.5 million active addresses. Despite this fundamental strength, short-term sentiment is fragile. Defending the $150-$160 range is crucial. If this support fails, technical and psychological selling pressure on the asset will intensify.
