Solana Price Rally Weakens as SOL/ETH Crashes 25%

Solana (SOL) price is facing weakness as bearish headwinds persist in the crypto market. Moreover, SOL continues to underperform against Ethereum (ETH), with the SOL/ETH ratio plunging 25% in less than three weeks to its lowest level in nearly a month. Amid weakening bullish momentum, will Solana price crash to $130 or bounce higher?

Solana Price Weakens as SOL/ETH Crashes

The momentum around Solana price is growing weak amid a crash in the SOL/ETH ratio. As Coingape reported, Solana’s underperformance is driving Ethereum’s gains, with the latter recording a mild 1.3% drop in seven days, notably lower than SOL’s 11% drop.

At press time, the SOL/ETH ratio stood at 0.0613 after shedding more than 25% of its value since May 8. At this level, the ratio was testing a multi-month support level that had previously determined whether the price continues with the upward trend or drops lower.

SOL/ETH is losing this support level as bears tighten their grip on the market. The last time that the ratio breached this support, it crashed to $0.000055, a bottom level that it had formed in December 2024. Therefore, if the ongoing decline continues, SOL/ETH is likely to hit this bottom again.

The above outlook stems from increased capital inflows to Ethereum as interest towards Solana fades. Ethereum ETFs are soaring, and as institutions accumulate, they are absorbing the sell-side pressure being caused by the bearish crypto market outlook. This has seen Solana outperform many top altcoins, including Ethereum.

Will SOL Drop to $130?

Solana price is flashing more bearish signals on the daily timeframe, with technical indicators showing that bulls are no longer in control of the price action. In fact, SOL’s RSI is at the lowest level since April 8, an indication that the bearish momentum is at its strongest point in nearly two months.

The AO indicator does not show any hope for bulls as the red histogram bars shrink in size, indicating that the bullish momentum that previously pushed SOL price to $187 last week is growing weak. The resumption of bullish trends will be confirmed if the AO bars turn green.

Going by this technical outlook and SOL’s weakness against the largest altcoin, it is possible that Solana price loses support at the 50% Fibonacci level of $141 and crashes to $130. This drop will mark a 16% decline from the current Solana price of $154, according to recent CoinMarketCap data. This bearish forecast aligns with a recent Coingape analysis noting that Solana may crash after forming a double-top pattern.

The invalidation thesis for this bearish outlook depends on a Solana price breakout above the $165 resistance level. If the price can overcome this resistance, the next bullish leg will take Solana to $187.

To summarize, the price of Solana is forming bearish signs as the daily timeframe chart shows that sellers are in control. As the momentum weakens, Solana may crash to $130, with the drop even more likely due to a 25% decline in the SOL/ETH ratio within three weeks.

For a long-term price prediction on Solana between 2025 and 2030 – Read This.

✓ Share:

muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.