- Solana (SOL) was trading around $122 on December 24, 2025.
- Recent losses have pushed SOL close to the critical $120 level.
- Falling investor confidence and challenging macro conditions threaten further declines for the altcoin.
Solana extended its decline in the closing weeks of 2025, slipping below $130 and testing price levels near $120.
On Wednesday, markets drove prices to these lows on major exchanges, and additional declines could allow bears to probe the recent $116 lows.
The $120 area has acted as intermittent support throughout the year.
However, as this move aligns with a broader pullback across the cryptocurrency market amid reduced liquidity and profit-taking, SOL appears vulnerable to further weakness.
Over the past year, Solana has underperformed Bitcoin and Ethereum, with SOL down about 38% compared with roughly 11% and 16% declines for BTC and ETH respectively.
Solana price outlook: Is $100 next?
Technical analysis suggests Solana is at a critical juncture.
Charts show mounting evidence of a bearish breakdown that could push prices toward $100 or lower in the near term.
A key concern is SOL’s position relative to the 50-day exponential moving average (EMA), currently around $160–$165 based on recent data.
Trading significantly below that level signals a loss of short-term momentum and reinforces the downtrend, as the 50-day EMA has acted as dynamic resistance in recent months.
Momentum indicators further support the downside view.
The Relative Strength Index (RSI) is hovering near the oversold area on daily and weekly timeframes, approaching readings that commonly precede oversold conditions but not yet signaling a definitive reversal.
In technical terms, this suggests scope for further downside before selling pressure eases.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is negative, with the MACD line below its signal line, confirming weakening bullish momentum and persistent selling dominance.
Chart patterns add to the cautionary narrative.
Solana is testing weekly neckline support around $120. A decisive break below this area could accelerate losses toward deeper support in the $100–$90 range.
What remains bullish for Solana?
Despite these headwinds, the fundamentals of the Solana ecosystem remain robust.
The network processed billions of transactions in 2025, maintaining its reputation for high throughput and low fees.
Institutional milestones, including the launch of spot SOL ETFs in the U.S. and increased integration with traditional finance platforms, have provided some support.
Spot Solana ETFs recorded inflows on December 23, even as Bitcoin and Ethereum continued to see outflows.
Although volumes are modest compared with earlier in the month, cumulative net inflows have risen to more than $754 million—an encouraging sign for SOL.
Still, if institutional interest wanes further, short-term technical indicators align with a broader downward trend.