Solana price tests $150 support amid market panic, is more downside ahead?

Caution is spreading across the market as Solana faces another critical test at a key support level. Currently, Solana trades at $157, experiencing a weekly loss of 22% after a sharp drop from the $188 level. This pullback reflects broader market weakness, with Bitcoin trading below $100,000 and the total cryptocurrency market value down by $300 billion. Solana’s outlook has turned bearish, struggling to hold the $150 support while resistance looms near $175.

As of now, Solana's price is at $157, reflecting a daily drop of 0.96% and cumulating to a 22% decline this week. Since Monday, persistent selling has erased much of its late October gains, increasing pressure on critical technical levels. The most significant decline occurred at the beginning of the trading week, with Solana tumbling from $188, breaking through its $175 support, and plummeting to as low as $147 before stabilizing near $150.

The decline isn’t limited to Solana. The total crypto market value dropped by a staggering $300 billion, as Bitcoin (BTC) briefly fell below $100,000. This has dragged other major altcoins lower, creating a cautious mood across the market. Broader weakness and limited signs of recovery have contributed to growing uncertainty for digital assets. Liquidations exceeding $2 billion add to the increasingly bearish sentiment across the crypto market.

Solana's future price movements heavily depend on whether the $150 support zone can withstand further selling pressure. If the negative market sentiment persists, prices could slide to even lower levels, potentially eroding investor confidence further. Alternatively, stabilization around $175 could trigger a healthier recovery, provided broader market conditions improve. For now, caution remains advised, as traders watch closely for signs of market stability.

Solana’s sharp decline has brought it to the bottom boundary of a downward parallel channel, established since September. Throughout this period, SOL has adhered closely to this pattern, finding support and resistance at the channel’s edges. It is now trading below its 200-day moving average and the critical $175 weekly support, signaling a strongly bearish midterm outlook. This breakdown poses challenges for buyers, as any upward movement will likely encounter strong resistance near $175.

With the broader crypto market deeply in the red, recovery attempts face significant headwinds. Negative sentiment drives traders to sell into any rebounds, reinforcing resistance at $175. Without overcoming this barrier, Solana may retest $150, or drop even lower if market conditions worsen. A more optimistic scenario would involve consolidation above $150, attracting new investor interest, and eventually enabling a more sustainable upward move.

Much will depend on whether overall market volatility subsides and confidence rebuilds. Currently, participants are likely to remain cautious, monitoring for signs of stability before seeking fresh opportunities. While Solana's potential recovery remains uncertain, the broader crypto market's performance will play a pivotal role in determining its near-term trajectory.