Analysis: Solana price breaks below the 200-day moving average, facing a test of the $100 level in September

ChainCatcher news, according to Cointelegraph, the price of Solana (SOL) has been weakening recently, with a weekly decline of 19.14% at the end of August, marking the second largest drop since 2024. Data shows that SOL has closed below the 200-day moving average for several consecutive days, the first time since September 2023. Technical analysis indicates that SOL is facing a test of the key support level at $127. Since April 2024, SOL has briefly fallen below $120 six times, but each time it managed to close above $127. However, this decline has lost the support of the 200-day moving average, and if it breaks below $127, the next target price could be $110.

In the derivatives market, open interest has risen by 20%, and the funding rate has been negative for a week, reaching -0.001, the lowest since 2024, further confirming the bearish sentiment in the market. On-chain activity shows that the DEX trading volume in the Solana ecosystem dropped to $7.7 billion last week, hitting a six-month low. Independent trader Bluntz_Capital pointed out that the SOL/BTC weekly chart is performing poorly and may have peaked. If the market remains bearish in September, SOL could retest the demand zone of $98-104. In the worst-case scenario, SOL may fall below the $100 mark.