Potential decline in Solana's price: Reasons and future predictions
In the crypto market, Solana (SOL) has emerged as a significant and fast blockchain network, but it has seen a notable decline in its price in recent days. In this article, we will analyze the reasons that could further drive Solana's price down, and we will also see if a bounce back from the $110 level is possible or if the market can go down further.
Fundamental reasons that could drive Solana's price down:
Negative market sentiment: There is a fear condition in the current market, forcing investors to retreat from risky assets. The pressure on Bitcoin and other major currencies is having a more negative impact on altcoins like Solana.
Decline in real economic value: In June 2025, Solana's real economic value decreased by 48%, which is a serious indicator that the number of actual users and transactions on the network is declining. This trend is putting pressure on the price.
Downward liquidation zones: The liquidation heat maps indicate that there are liquidation clusters at the levels of $140, $125, and $112. As the price touches these levels, further liquidations are triggered, pushing the price down further.
Technical weakness: Solana's closing below the 100-day EMA ($154) and consistently making lower highs and lower lows indicates a technically weak trend. If the support at $145 breaks, a drop to $125 could happen very soon.
Competition from Ethereum and other L1s: Solana's market share is being affected by the increase in TVL and functionality of Ethereum L2s and other chains like Sui, Aptos, and Avalanche.