The Current State of Solana (SOL) Prices
Solana (SOL), one of the most prominent altcoins, has seen significant price fluctuations in recent weeks. As of December 24, 2025, SOL traded around the critical $120 mark after dropping from $130, signaling a potential path to test the $100 level. Various factors, including market-wide retracements, profit-taking, and macroeconomic pressures, contribute to this bearish narrative.
Technical Analysis: A Bearish Outlook
From a technical perspective, Solana’s price trajectory looks challenging. The cryptocurrency is trading significantly below its 50-day exponential moving average (EMA), which hovers between $160 and $165. This divergence underscores the loss of short-term momentum and reinforces the growing downtrend.
The Relative Strength Index (RSI) value lies in the 30 to 35 range, bordering oversold levels without indicating a clear reversal. Similarly, the Moving Average Convergence Divergence (MACD) shows negative momentum, with the MACD line staying below the signal line. These indicators suggest further downside risks for SOL in the coming weeks.
Adding to these concerns, a weekly neckline support level exists at approximately $120. Any decisive break below this level could trigger additional declines, sending Solana towards the $100–$90 region—posing a potential buy opportunity for long-term investors.
Solana in the Broader Market Context
While Solana has underperformed major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH)—with annual declines of 38% compared to BTC and ETH’s 11% and 16% losses—its fundamentals remain strong. Throughout 2025, the Solana blockchain continued to process billions of transactions, maintaining its appeal for low fees and high-speed capabilities.
Institutional interest in Solana has played a stabilizing role. For instance, SOL-based spot ETFs have recorded net inflows exceeding $754 million, highlighting investor confidence even amidst a market downturn. However, sustained institutional support will be imperative for Solana to recover its footing in the medium to long term.
Looking Ahead: Is $100 a Buy Zone?
As Solana approaches critical support levels, many investors are eyeing the $100 mark as an opportune entry point. For those considering adding SOL to their portfolios, it is essential to weigh the risks of further declines against the strong ecosystem fundamentals.
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Final Thoughts
The coming weeks could prove pivotal for Solana as it navigates current market challenges. Staying informed about technical indicators, market trends, and institutional movements is key to making well-informed investment decisions. As always, cryptocurrency remains a high-risk market, and it’s essential to trade responsibly.
