Solana (SOL) is facing intense selling pressure as its technical indicators reveal levels of overselling deeper than during the 2022 FTX bankruptcy event. Market analyst Ash Crypto highlighted that Solana’s monthly Relative Strength Index (RSI) has fallen to a critical low point, signaling an unusually steep momentum decline despite the price remaining significantly above its historic lows.
The RSI has dropped below 39, overtaking the previous oversold threshold of approximately 49 recorded during the FTX collapse when SOL’s price bottomed near $8. This signals more pronounced market pessimism now, even as Solana’s price fluctuates between roughly $60 and $95 in 2026—far below its previous peak of over $200 last year. Such a sustained oversold RSI condition often indicates seller exhaustion but does not guarantee an immediate reversal.
Solana has endured a prolonged bearish phase marked by eight consecutive monthly losses, a first in its trading history, underscoring the depth of its downturn. This consecutive string of red monthly candles and an 80% decline from the 2025 all-time high to a three-year low around $60 reflect significant market aversion.
For investors and traders, this presents a complex picture: the extreme oversold RSI could mean Solana is nearing a price floor where most sellers have exited, potentially setting a foundation for recovery. Historically, after Solana’s 2022 low of $8 and FTX aftermath, the asset rallied dramatically to over $270 in 2025, illustrating the potential for strong rebounds from deep corrections.
However, caution persists. The current bearish momentum and lack of clear technical signals for reversal imply the oversold condition could persist longer than anticipated. Without confirmation of a bottom, prices may continue to test lower levels or remain stagnant, posing risks for those anticipating a swift turnaround.
In summary, Solana’s market status is a balancing act between severe overselling, which often precedes rebounds, and sustained bearish trends that can prolong declines. How the asset moves from this oversold zone will be crucial for its near-term trajectory in a volatile cryptocurrency environment.