Solana (SOL) is facing a period of significant bearish pressure, with its price continuing to slide in a broader market downturn. As of March 18, 2025, the price of Solana stands at $124, having experienced an intraday pullback of 3.07%. While the cryptocurrency market as a whole has been facing uncertainty, Solana’s situation appears particularly troubling, as its network activity has taken a sharp downturn. With decreasing activity and a persistent downward price trend, many are questioning if the price of SOL will break through the critical $100 psychological barrier and potentially dip to as low as $60.

Price Trend Under Pressure

Solana’s price has dropped nearly 60% from its all-time high of $295, recorded in late 2024. The extended correction has now lasted for more than 60 days, as SOL struggles to recover. Despite a brief recovery attempt last week, when the price rose from a low of $112 to $137, the downward momentum has returned. This has many analysts predicting that Solana could soon test new lower levels, including the key $100 support level.

On the daily chart, the price action indicates a continued bearish outlook. After recent market movements, Solana is facing another round of selling pressure that could push the price lower. A break below the $100 level would mark a significant psychological barrier, with many investors closely watching the $104.30 support level as a short-term pivot.

Key Support Levels at Risk

The next major support level for Solana lies at the S2 pivot, which sits at $60, indicating a potential downside of nearly 50% from its current price of $124. If the market fails to recover and Solana continues to lose momentum, a drop to this support level may become inevitable. The S2 support level would represent a significant decline from its highs, further highlighting the severity of the current market conditions.

However, not all indicators are negative. There is some hope for a potential recovery, as the Moving Average Convergence Divergence (MACD) shows signs of a bullish divergence. The MACD and the signal lines are currently crossing over positively, suggesting a potential reversal if broader market conditions improve. If this bullish momentum develops, the next resistance level to watch could be the $169.20 mark, as the price may try to regain upward traction.

Declining Network Activity

Adding to Solana’s challenges is the noticeable decline in network activity. According to recent data, the number of active addresses on the Solana blockchain has plummeted by more than 50%, dropping from 5.69 million in January 2025 to just 2.76 million in March. This sharp reduction in network engagement reflects a diminishing demand for Solana’s native token, SOL.

Furthermore, the number of new addresses on the network has also experienced a decline, falling to just 2.6 million. This slowdown in activity indicates a lack of fresh interest in the Solana ecosystem, which could further weigh on SOL’s price. For a cryptocurrency to maintain upward momentum, growing user engagement and adoption are essential. As it stands, Solana’s network appears to be losing steam, which could spell further trouble for its token.

Market Outlook

Solana’s recent price performance and the declining network activity have created a cautious atmosphere among traders and investors. The decline in active addresses, combined with the bearish price action, raises concerns that Solana’s price could continue its downward trend and break critical support levels. While some analysts remain hopeful that technical indicators like the MACD may signal a potential reversal, the overall outlook remains uncertain.

As the broader cryptocurrency market continues to show volatility, Solana’s ability to maintain support at key levels will be crucial. If the network’s activity continues to slow and investor sentiment remains negative, a price drop to $60 could be a realistic scenario in the coming weeks. Investors should remain vigilant, watching for any signs of recovery or further deterioration in market conditions.