Solana falling below its $130 support line may spark trouble

Solana, or SOL as it is commonly known, dropped to $130 earlier today. SOL fell to $130 again today, marking the second occasion in recent days that SOL reached this price. This price level seems to be a good support for the popular cryptocurrency. If the price drops below $130, the asset could fall as low as $100.

What happens if Solana drops below $130 and reaches the price of $100?

SOL’s performance has improved since today. According to CoinGecko’s Solana dataSOL’s price is up 3.5% within the last 24 hour. SOL’s price is down 8.1% on weekly charts and 9.9% 14-day charts despite the recent rally. It has also fallen 22% from the previous month. SOL was one of the most successful cryptocurrencies in 2024. However, the asset lost all its gains from the previous year and has dropped 38.6%.

Solana’s (SOL) $130 price level is critical. A price drop below $130 would bring the asset back to a trading level of around $100 – $105, which was last reached in April. Solana would be in big trouble if the asset fell below $100. This asset is not trading below $100. It has not done so since January 2024.

In spite of the continued bearishness one has to admit Solana’s (SOL’s) resilience. After the FTX scandal of 2022, Solana’s (SOL) asset dropped to less than $9. SOL is up multiple times since the 2022 lows. In January, the asset reached its highest peak ever of $293.31. SOL is a project that has an incredible history. It’s safe to say it will rebound and reach new highs when the bear market ends.

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Solana’s (SOL) path will likely be similar to that of Bitcoin (BTC). BTC reversal may be the only thing to bring the market back. Solana has also launched several ETFs in recent weeks. The market recovery will lead to an increase in ETF flows, and this could further drive SOL’s prices.