SOL prices fall below 200-day SMA, may face test at $100 mark in September

Solana (SOL) prices have continued to weaken recently, falling 19.14% in a single week at the end of August, the second largest decline since 2024. For the first time since September 2023, SOL has closed below its 200-day SMA for several consecutive days, according to data. Technical analysis shows that SOL is facing a key support level of $127. Since April 2024, SOL has briefly fallen below $120 six times, but has managed to close above $127 each time. However, the current decline has lost support at the 200-day SMA and a break below $127 could lead to a next target of $110. In the derivatives market, open interest rose 20 per cent and the funding rate was negative for a week at -0.001, the lowest since 2024, further confirming the bearish sentiment. In terms of on-chain activity, the Solana ecosystem saw DEX volume fall to a 6-month low of $7.7bn last week. Independent trader Bluntz_Capital noted that the weekly chart of SOL/BTC has performed poorly and may have already peaked. If the market stays bearish in September, SOL could retest the $98-104 demand range. In the worst case scenario, SOL could fall below the $100 mark.