Solana Retreats Below $180: How Far Might It Fall?

Solana (SOL) is facing renewed pressure as it falls below the $180 level, which had previously acted as short-term support. After climbing above $220 just over a week ago, the token has struggled to keep its gains, moving down with the wider crypto market. Investors are now wondering how much lower it could go and what it would take to recover.

What Caused Solana’s Drop?

The crypto market has struggled recently. Total market capitalization fell around 6 percent to $3.5 trillion, showing that investors are cautious. Bitcoin slipped to about $105,000, pressuring other digital assets.

The market decline was accompanied by a large-scale liquidation, with more than $1.2 billion in positions closed. Solana experienced over $97 million in liquidations of long positions in a single day, reversing gains from the past month and intensifying negative trends.

Geopolitical news has contributed to rising market uncertainty. Former President Trump’s plan to impose complete tariffs on Chinese imports has raised concerns, echoing the effects of previous global trade tensions.

Technical Signals of SOL

Solana is trading around $176.78, down more than 8% in the past 24 hours and over 19% this week. The token’s fall began after it failed to break back above $210, with successive red daily candles highlighting strong selling pressure.

From a technical perspective, Solana falling below $180 carries important implications. The Relative Strength Index (RSI) sits near oversold levels at 39, while the MACD histogram at -3.37 shows continued bearish momentum.

Immediate support is located at $173.7, a level considered crucial. If selling continues, $168, the low from last week’s flash crash, may be the next key support. Worsening market conditions could push SOL down to $150.

What Does SOL Need To Recover?

Solana still has a chance to recover despite obstacles. It must hold $180 and climb above the 100-day moving average to gain strength. Institutional buying and progress on regulations, including ETFs, have driven past recoveries. Without these catalysts, the token could face further losses under ongoing market pressure.

Solana has historically responded well to institutional accumulation and regulatory news. Renewed corporate interest or positive ETF developments could support a recovery. While the network’s fundamentals remain solid and new partnerships like Uniswap’s Solana integration are emerging, short-term risks are currently more significant.

What’s Next for Solana?

Solana faces a pivotal moment as bearish momentum remains strong and price swings are pronounced. Support at $173.7 and $168 is crucial. Staying above $180 could contain losses, while a drop below this level may push SOL toward $150. Future performance will be influenced by overall crypto trends, high-volume liquidations, and regulatory or institutional developments.