Solana faces mounting selling pressure, with its price dropping to the lowest level since September 2024 amid a broader market correction. Extreme fear dominates the crypto landscape, and SOL struggles to find strong support as bears maintain control since its January all-time high. The token has retraced over 55%, leaving investors uncertain about its short-term prospects.
Market Sentiment and On-Chain Data
The cryptocurrency market remains under pressure, with altcoins struggling to regain bullish momentum. Analysts warn that SOL could face further declines if it fails to hold critical support levels.
Crypto expert Ali Martinez shared on-chain data revealing a sharp decline in Solana’s transfer volume:
- November 2024: $19.9 billion
- Current: $14.57 million
This 99% drop signals reduced network activity and waning investor interest, raising concerns about Solana’s ecosystem health.
Key Price Levels and Trends
- Current Price: $141 (down 55% from peak).
- Critical Support: $140–$130. A breakdown below $130 may trigger deeper losses.
- Resistance: $150. Bulls need to reclaim this level to reverse the trend.
Martinez’s analysis highlights fading meme coin speculation, which previously buoyed SOL’s demand. Glassnode data confirms plummeting transfer volumes, reflecting weakened utility.
👉 Why Solana’s Network Activity Matters for Investors
FAQs
1. Why is Solana’s price dropping?
Solana faces sell-offs due to broader market corrections, reduced meme coin hype, and declining network activity.
2. What’s the significance of the $140 support level?
It’s a psychological and technical threshold. If broken, SOL could slide toward $130, exacerbating bearish sentiment.
3. Can Solana recover soon?
Recovery depends on regained network activity, Bitcoin’s stability, and renewed investor confidence.
Outlook: Pivotal Days Ahead
SOL’s trajectory hinges on whether bulls defend $140. A rebound could target $150, while failure may deepen the downtrend. Traders should monitor:
- Bitcoin’s movement: As a market leader, BTC’s stability is crucial.
- On-chain metrics: Rising transfer volumes could signal renewed interest.
👉 Expert Strategies for Trading Volatile Altcoins
Chart Source: TradingView (SOL/USDT). Featured image via Dall-E.
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