Bitcoin’s recent drop below the critical $100,000 mark has triggered a chain reaction in the cryptocurrency market, with Solana (SOL) taking a particularly hard hit. SOL plummeted past its key $200 support level, reaching a historic low amid heightened market uncertainty.

Bitcoin’s Fall and Its Impact on Solana

The decline in Solana’s price appears to be directly linked to Bitcoin’s downturn, reinforcing the deep correlation between major digital assets. Over the past three days, more than $365 million worth of SOL has been offloaded, increasing selling pressure. Traders, spooked by Bitcoin’s drop, shifted their focus away from riskier altcoins, further exacerbating Solana’s downward movement.

According to Coinglass data, Solana has seen significant outflows, signaling reduced demand. In crypto markets, when an asset experiences sustained outflows, it suggests investors are pulling liquidity rather than accumulating positions, which often signals a bearish trend.

Bearish Signals Confirmed by Market Indicators

Technical indicators also reinforce the negative sentiment. Solana’s long/short ratio recently dropped below 0.93, reflecting a larger number of traders betting on further declines. Additionally, the Chaikin Money Flow (CMF) indicator has hit the zero line, indicating strong selling pressure.

With these factors at play, Solana’s current trajectory suggests a potential dip toward $187.71 if selling pressure continues. However, if demand picks up, a rebound toward $229 or higher remains a possibility.

Should Investors Buy the Dip?

While the current downtrend raises concerns, volatility often presents opportunities. For traders watching key levels, a potential reversal could be triggered by renewed demand or Bitcoin’s recovery. However, caution is advised as the market remains sensitive to macroeconomic events.

📌 This analysis is for informational purposes only and does not constitute financial advice.