Solana Price Breakdown Looms as New Addresses Drop to 9-Month Low

Since last week, the Solana price has plunged from $141 to $123 current trading value, registering a loss of 13.2%.

The crypto market saw a downturn on Thursday as a tariff war between the U.S. and the European Union escalated, pulling the Bitcoin price back from $85,000 and surging selling pressure on most major altcoins including SOL.

The Solana faces the risk of a prolonged correction below $100 as new addresses continue to decline and the Funding Rate turns bearish.

Solana Price Breakdown Looms As New Addresses Drop To 9-Month Low

Since last week, the Solana price has slumped from $141 to current trading value of $123, registering a loss of 13.2%.

Amid this pullback, the number of new addresses on the Solana network has plummeged by 2.92 Million — its lowest level since June 2024.

The declining trend indicates weakening network growth and user adoption, which could further dampen investor sentiment.

Moreover, the OI-Weighted Funding Rate of Solana has slid to 0.0161%, highlighting a shift toward bearish dominance in the derivatives market as traders become risk-averse.

Historical data reveals that a spike of this metric into negative territory has often triggered increased selling pressure, pushing the SOL price into a prolonged downtrend. If the funding rate slips further into the negative zone, it may indicate additional downside potential as short sellers gain greater control, potentially dragging SOL toward the $120 support zone.

SOL Faces Risk Of Losing 12-Month Support

In the last two months, the Solana price has witnessed a high-momentum downtrend from $295.8 to $122.04, denoting a 58.75% correction. The correction trend pierces below the daily EMAs (20, 50, 100, and 200) and loses major support of the 50% retracement level.

Furthermore, analysis of the daily chart indicates that the 100-day EMA slope is poised to fall below the 200-day EMA slope for the first time in 500 days. If a “death crossover” occurs, it will amplify the selling pressure in the Solana price correction and escalate the potential for a breakdown below $120.

A bearish breakdown below this multi-month support with a daily candle closing will further bolster the downward momentum and drive the price toward the $100 floor.

Conversely, the $120 floor has served as a major accumulation trend for buyers since March 2024. Therefore, renewed demand pressure at this support could empower buyers to stage a counter-attack.