Solana Breakdown Toward $100 Begins Amid Pump.Fun Fraud Lawsuit

Solana (SOL) entered the breakdown phase of its prevailing bear flag pattern just as legal pressure on the ecosystem intensified, with a US federal court ordering plaintiffs to expand their class-action lawsuit against Pump.fun, Solana Labs, the Solana Foundation, and Jito Labs.

Court Expands Lawsuit Targeting Solana Ecosystem Players

The expanded claims center on alleged structural advantages afforded to insiders and sophisticated actors during token launches, including early access mechanisms and validator-level dynamics that plaintiffs argue disadvantaged retail participants.

The court’s decision does not rule on the merits of the claims but allows them to proceed to further litigation stages.

Legal overhangs often weigh on sentiment, regardless of the ultimate outcome, particularly when they affect core infrastructure providers rather than isolated applications.

Some analysts are therefore treating the expansion of this lawsuit as the “end for Solana.”

🚨 THIS MIGHT BE THE END FOR SOLANA!!!

I don’t think people understand how serious this is yet…

If this goes through, solana might drop below $5 in the next 2 years.

I spent 12 hours digging through court documents and let me tell you…

This doesn’t look good, I’ll explain:… pic.twitter.com/GGdi3uWtlr

— NoLimit (@NoLimitGains) December 17, 2025

SOL Bear Flag Points to Declines Toward $100

Solana is flashing a bearish continuation signal after entering the breakdown phase of a well-defined bear flag pattern on its daily chart.

The setup began with a sharp sell-off from the September peak near $250, which pushed SOL down to the $150 region and formed the flagpole of the structure.

Price action then stabilized into a narrow consolidation range between roughly $130 and $145, developing a downward-sloping channel that typically reflects corrective, rather than accumulation, behavior.

Throughout the consolidation phase, SOL remained capped below its 50-day and 200-day exponential moving averages, both of which have turned lower and acted as dynamic resistance.

As of Dec. 18, SOL was trading below the flag’s lower trendline, a downside move it achieved alongside a rise in daily trading volumes. Such a price action typically results in further downtrend, with the downside target at a level equal to the height of the previous decline.

That brings SOL’s downside target for December within the $100-110 range.