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Solana price risks fall to $57 amid ongoing rejections

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Solana price risks fall to $57 amid ongoing bearish rejections - 1

Solana price faces increasing downside risk after repeated rejections at major resistance near $89. Failure to hold key support levels could trigger a deeper corrective move toward $57.

Summary

  • Multiple rejections at $89 value area high resistance
  • $77 support becomes critical structural level
  • Breakdown opens downside target toward $57 support

Solana’s (SOL) recent price action has become increasingly technical, with the market struggling to overcome a strong supply zone that continues to cap bullish momentum. Despite multiple recovery attempts, sellers have consistently defended higher levels, preventing a breakout and reinforcing range-bound conditions.

As resistance holds firm, attention now shifts toward critical support zones that may determine the next major directional move.

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Solana price key technical points

  • Major Resistance: $89 aligns with the value area high of the current trading range.
  • Key Support: $77 value area low acts as immediate high timeframe demand.
  • Downside Target: Loss of support exposes $57 high timeframe support.
Solana price risks fall to $57 amid ongoing bearish rejections - 1
SOLUSDT (4H) Chart, Source: TradingView

Solana has experienced multiple rejections at the $89 resistance region, a level defined by the value area high within the current trading range. The repeated failure to break above this zone highlights the presence of strong overhead supply. Each rejection reinforces seller dominance and signals that buyers currently lack sufficient momentum to establish trend continuation.

From a price action perspective, repeated rejections at the same level often indicate distribution rather than accumulation. Markets encountering persistent selling pressure at resistance typically rotate back toward areas of lower liquidity to search for demand. In Solana’s case, the next critical level sits near $77, which aligns with the value area low and represents the immediate high timeframe support zone.

The $77 region now becomes a pivotal technical level. Holding this support would maintain the broader trading range and allow price to continue consolidating between established boundaries.

However, a confirmed breakdown below this level would signal structural weakness and increase the probability of a sharper corrective move, even as Solana DEXs deliver CEX-level pricing despite a sharp decline in trading volume, highlighting evolving on-chain liquidity dynamics.

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If Solana loses $77 support, the market opens the door for a deeper rotation toward $57 high timeframe support. This level represents a major liquidity zone where previous demand entered the market. A move toward $57 would effectively complete a larger range structure, sweeping the lowest swing low where liquidity is likely resting before any potential reversal attempt.

Market structure analysis reinforces this outlook. Solana remains unable to transition into a bullish trend while resistance continues to reject price advances. The formation of lower highs near resistance suggests weakening momentum, while range dynamics imply that liquidity below price remains an attractive target.

Volume behavior also supports caution. The inability to sustain rallies above resistance without expanding bullish participation indicates that buying interest remains limited at higher prices. Until buyers demonstrate strong acceptance above resistance, downside rotations remain technically favored.

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Despite the bearish risks, such corrective moves are not uncommon within broader market cycles. Large trading ranges often develop through multiple rotations between support and resistance before a decisive breakout occurs.

A potential move toward $57 could therefore represent a liquidity reset rather than a long-term trend invalidation, particularly as Step Finance winds down its Solana-based platforms following a January hack that resulted in losses of up to $40 million, adding further pressure to ecosystem sentiment.

What to expect in the coming price action:

Solana’s outlook remains dependent on the $77 support level. Holding this zone may preserve range conditions, while a confirmed breakdown increases the probability of a move toward $57 support.

Until resistance at $89 is reclaimed, bearish rejections continue to favor downside rotation within the broader structure.

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Crypto World

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?