Why Solana Is Falling: Key Factors Driving the Recent Price Decline

Solana Holds At $125, But for How Long?

Solana today reveals a significant downturn, with SOL trading at $125.88 after a sharp 3.91% drop in the last 24 hours. Over the past week, the crash has led to a 4.26% decline, and in the past month, It has fallen by more than 11.26%. This drop demonstrates the lack of confidence among investors, which makes many wonders, "Why is Solana crashing?"

Source: CoinMarketCap

Solana price action is still weak and shows no clear signs of a strong recovery. Despite a recent rebound, the overall trend is still bearish, with lower highs forming across multiple timeframes. The pattern suggests that there is still significant selling pressure, making price increases difficult. At the moment, investors have differing opinions about coin's future. Some investors are waiting for the price to rise again. Others are becoming increasingly concerned and clinging to their assets in the hopes that the price will eventually rise again, while others are selling to prevent further losses.

If this coin is unable to overcome resistance, its downward trend may continue. If the price falls to $113, a large portion of the gains from earlier this year might be lost.

Why Is Solana Falling ?

1. Whale Withdrawals Raise Issues

A whale, a major investor, unstaked 60,289 SOL and sold them for 7.67 million USDC, or $127 per SOL. This sparked worries about a big sell-off. Major investors' large withdrawals from exchanges often suggest that they may be preparing to sell more, which further strains the market.

Source: X post

2. Key Resistance Trend Line Rejection

It has been declining since January 2025. It recently attempted, but failed, to break above a key resistance level. This rejection and a bearish engulfing candlestick pattern are signs of strong selling pressure. It implies that prices may continue to decline.

3. Economic and Market Circumstances

The general condition of the market has an impact on SOL decline as well. Uncertainty is being brought on by rising interest rates and unstable economies worldwide. Many investors are avoiding risky assets like cryptocurrencies. This hinders Solana's recovery.

What's Next for Solana?

Not every analyst thinks SOL will fail. A significant rally might be triggered if SOL is able to close a daily candle above $130 and break above the descending trendline. Some experts predict a 22% increase in this instance.

As long as the price is still under pressure, SOL's next move will be determined by important support and resistance levels. A significant rally might be triggered if it breaks above $130. However, the price may drop to $113 if sales continue. Investors should monitor market trends, whale activity, and economic conditions to ascertain SOL's future direction. Due to the high degree of uncertainty, the next few days will be very important for SOL's price action.

For now, the market remains uncertain. Traders should closely monitor key support and resistance levels to forecast sol next move.