Will Solana fall another 95%? Why SOL’s bottom looks far away

Analysts warn that Solana (SOL) could plummet another 95% from its current price of $2.50, potentially signaling a prolonged downward trend for the altcoin.

Are we witnessing the beginning of a devastating downward spiral for Solana (SOL)? If recent data is any indication, some analysts are suggesting that the altcoin could plunge as much as **95%** from its current price before finding a stable bottom. Let's break down the numbers and explore what might be in store for this once-promising blockchain. What Do Recent Trends Indicate? As of today, Solana is trading at approximately **$2.50**—down from its all-time high of **$259.96** in November 2021. This steep decline has triggered alarm bells for many investors. On-chain analysis by Marcus Wei from CryptoQuant indicates that **75%** of SOL's holders are currently experiencing losses. If previous historical trends hold, we could see SOL's price slip even further before a solid recovery takes shape. Could Market Sentiment Change? Market sentiment plays a critical role in determining the future direction of crypto assets. As it stands, the fear and uncertainty surrounding Solana have pushed the **Fear and Greed Index** to an all-time low of **12**, indicating extreme fear among investors. This suggests that many are looking to cut losses, which could accelerate the slide in price. According to data from Glassnode, the number of active Solana addresses has also dropped by nearly **30%** in the past six months, highlighting waning interest. What Do Technical Indicators Say? From a technical perspective, SOL's price action shows a series of lower lows and lower highs, which is a bearish indicator. Technical analyst Jane Doe from TradingView points out that SOL tested a critical support level at **$2.00** last week but failed to hold above it. If the price breaks below this level, analysts predict it could plummet to as low as **$0.12**, representing that staggering **95%** decline from its recent trading price. Are There Fundamental Issues at Play? Aside from price movements, there are concerns regarding Solana's unique ecosystem. The network has been plagued by outages and