Solana Crashes With Bitcoin : How Low Can It Go ?

The crypto market is going through a period of instability, and Solana (SOL) is at the forefront. Since February 1^st, the drop of Bitcoin below 100,000 dollars has caused a shockwave across altcoins. Solana, whose price moves in strong correlation with BTC, saw its price drop below the critical threshold of 200 dollars. The impact was not limited to falling prices: investors massively reduced their exposure, leading to a withdrawal of 367 million dollars from spot markets in three days. This massive liquidation reversed market sentiment, as evidenced by a long/short ratio that dropped to 0.93, confirming seller dominance. While technical indicators signal sustained bearish pressure, a break of current supports could send Solana to new lows, unless a sudden surge in demand comes to reverse the trend.

Solana below 200 dollars : the market capitulates

On February 1^st, Bitcoin fell below the symbolic threshold of 100,000 dollars. This drop pulled the entire crypto market into a bearish dynamic. Just as often happens during such shocks, altcoins suffered a domino effect, and Solana (SOL) was no exception. Its price quickly fell below 200 dollars, a key psychological level for investors.

Capital outflows from SOL’s spot markets illustrate increasing mistrust among traders. According to Coinglass, over 367 million dollars were withdrawn in just three days, a strong signal of disengagement. Such a degradation in liquidity means that sellers dominate trading, and demand for Solana is weakening. This pullback was accompanied by a collapse of the long/short ratio, which dropped to 0.93. Furthermore, this figure indicates that short positions far exceed long positions, reinforcing selling pressure on SOL. If this trend continues, the market may continue to bet on a further price correction.

A critical technical signal : towards a new low ?

Technical signals confirm Solana’s current fragility, suggesting a possible continuation of the correction. Indeed, the Chaikin Money Flow (CMF) indicator, which measures incoming and outgoing capital flows, remains at a neutral level for now. However, its alarming approach to the negative zone indicates a gradual decrease in demand. If this indicator falls below zero, it would reflect a net imbalance in favor of sellers, meaning that capital outflows far exceed inflows. Such a situation would heighten selling pressure, making another price drop for SOL even more likely.

If this bearish trend continues, technical projections estimate that Solana could reach a new support level at 187.71 dollars. This threshold would constitute a critical level, likely to determine the magnitude of the upcoming correction. On the other hand, if a return of buyer interest manifests, the scenario could reverse. A resurgence in demand would propel SOL towards 229.03 dollars, a level that would then act as resistance. The market’s evolution will largely depend on investor sentiment and a potential rebound in Bitcoin, which Solana closely follows.

The current trajectory of Solana reflects the vulnerability of altcoins to Bitcoin’s fluctuations. As long as the overall sentiment remains bearish, a durable rebound seems compromised. The absence of clear bullish signals prompts investors to exercise caution, thus limiting short-term recovery prospects. However, a trend reversal cannot be ruled out. A resurgence in demand or a market-wide recovery could allow SOL to regain upward momentum. For now, uncertainty prevails: Solana will either need to find a stable floor or continue its drop to new lows.