TechFlow news, on September 2, according to Cointelegraph, Solana (SOL) prices have continued weakening recently, with a weekly drop of 19.14% at the end of August—the second-largest decline since 2024. Data shows SOL has closed below its 200-day moving average for several consecutive days, the first time since September 2023. Technical analysis indicates SOL is now testing a critical support level at $127. Since April 2024, SOL briefly dipped below $120 six times but always recovered to close above $127. However, this downturn has already broken the 200-day MA support; if $127 is breached, the next target could be $110.
In the derivatives market, open interest rose by 20%, while funding rates remained negative for a full week, reaching -0.001—the lowest since 2024—further confirming bearish sentiment. On-chain activity also weakened: last week, DEX trading volume in the Solana ecosystem dropped to $7.7 billion, the lowest in six months. Independent trader Bluntz_Capital noted that the SOL/BTC weekly chart looks particularly weak, suggesting a possible top formation. If bearish conditions persist through September, SOL might retest the demand zone between $98 and $104. In the worst-case scenario, SOL could fall below the $100 mark.
