Solana is showing a mixed outlook as it stabilizes around a key technical level while underlying network activity continues to soften. Price action has found a firm footing near the $84 support zone, helping to preserve the broader bullish structure and limit downside pressure for now. Market Structure Remains Strong Despite Engagement Drop Solana is holding a critical level that could define its next major move. An analyst known as Venture on X highlighted that SOL is currently at the support-resistance (SR) level around $84, and the structure suggests there is little reason for the price to break below it. Once momentum shifts, price could quickly move through nearby value areas, and the structure below has effectively turned into a defensive base. Related Reading: Solana (SOL) Hits Key Support, Will Bulls Hold the Line? Looking at the broader macro, this structure aligns with a major SR level that previously held firm, even as calls for a deeper 70% correction circulated. The current structure on the chart shows that the SOL price will not go lower until it loses its current level, and the money flow data will shift back to negative. In this context, SOL is behaving similarly to other cryptocurrencies that form a positive daily phase, often associated with mid-cycle pivots. With multiple technical factors aligning, the current setup is being viewed as a low-risk, high-reward long opportunity, as long as key levels continue to hold. What This Downtrend Means For Solana’s Market Position Solana is showing a striking divergence between network activity and market sentiment. Santiment Intelligence on X has noted that the SOL weekly active addresses have fallen sharply from around 5.01 million in early February to approximately 2.89 million in the latest data. Fewer wallets are actively transferring SOL, suggesting reduced usage at a time when the asset has largely stagnated in price. Related Reading: Solana Ecosystem Boom: Network Sees Massive Growth In Stablecoin Active Users At the same time, sentiment toward SOL platforms has surged to its highest level since January. Bullish commentary now significantly outweighs bearish views, with roughly 3.2 positive mentions for every negative one across X, Reddit, Telegram, and other platforms. The narrative gaining traction is that SOL may be primed for a breakout, especially after underperforming Bitcoin and other major assets, potentially benefiting from a mean reversion. However, the key question remains whether SOL can validate the bullish outlook, which will likely depend on its network’s ability to reverse the current decline in activity and reestablish meaningful on-chain utility. The founders of morecryptoonlv, known as MCO Global on X, have also pointed out that Solana is attempting to track the upward momentum of Bitcoin, with its broader wave structure still intact. From a technical standpoint, the current setup remains constructive, and the price needs to hold the signal line at $85.50 to maintain bullish momentum. Featured image from Freepik, chart from Tradingview.com
Solana is undergoing a major shift as big institutional players are increasingly positioning in the network. What was once viewed primarily as a high-performance Layer-1 driven by retail and developer enthusiasm is now attracting serious capital allocations from professional funds, asset managers, and institutional allocators. This trend bolsters the SOL accumulation thesis as an emerging institutional liquidity and infrastructure story. Why Big Capital Begins Positioning Into Solana In an X post, Rex reported that the latest wave of institutional interest in Solana confirms what analyst Solana Sensei pointed out, that big firms are actively accumulating SOL right now. Forward Industry alone is holding close to $1 billion worth of SOL, while firms like Defidevcorp and others are sitting on hundreds of millions. Related Reading: Solana’s Network Performance Reaches Historic Peaks As Transaction Activity Climbs Rex views this move as just the start, and SOL stands out when it comes to real-world asset (RWA) tokenization. Its insane transaction speed, combined with dirt-cheap fees and real scalability, finally makes moving real assets on-chain viable and sustainable. These projects choosing SOL isn’t accidental; they know where the future is heading. The expert also reflects on the journey. SOL has been addressed as fast but too centralized. Currently, the same institutions that once stayed on the sidelines are quietly stacking billions in SOL, while the real run hasn’t even started yet. SOL is positioning itself to reach levels that may look unimaginable in the next few years. “Supper proud to be part of this,” Rex noted. While the crowd stayed focused on the 2025 volatility, an analyst known as Senior highlighted that Solana entered 2026 by finally delivering on its biggest technical promise. The Firedancer validator client officially went live on mainnet as of January 2026, pushing the network’s finality to 150 milliseconds and finally ending years of beta resilience and performance concerns. At the same time, Western Union officially integrated the SOL network. Meanwhile, the Spot SOL ETF surpassed $1 billion in total net assets this week, indicating that the infrastructure has also reached true institutional-grade standards. In the past, the moment SOL transitions from a retail playground to a permanent global financial rail, becoming unshakeable will feel obvious. On-Chain Activity Reflects Real Usage Growth The Solana metrics are growing. Investor and founder of the Inner Circle, Lark Davis, has revealed that the SOL application revenue surged to $2.39 billion, a 46% year-over-year increase and a new all-time high in 2025. SOL network revenue also reached $1.48 billion, representing a 48 times increase over the past two years. Meanwhile, daily active wallets have climbed to 3.2 million, showing that SOL growth is improving. Related Reading: Why Has The Solana Price Been In A Steady Downtrend Since January? On January 6th, nearly $900 million in stablecoin supply entered the SOL ecosystem in a single day. Currently, SOL leads all chains in both 24-hour and 30-day DEX volumes, and has emerged as the top blockchain by market capitalization for tokenized stocks. Featured image from Freepik, chart from Tradingview.com
Solana (SOL), one of the foremost blockchains in the cryptocurrency sector, recently released its annual review for 2025, showcasing major growth across several key metrics, including daily active wallets and decentralized exchange (DEX) volume. Seven Solana Apps Break $100 Million Revenue Barrier According to the report issued on social media platform X (previously Twitter) applications built on Solana generated $2.39 billion in revenue, reflecting a year-over-year increase of 46% and marking a new all-time high (ATH). Seven standout applications in particular, including Pumpfun, each surpassed the $100 million revenue threshold in 2025. Additionally, the variety of smaller applications—those earning under $100 million—collectively produced over $500 million in revenue. Related Reading: XRP Surges Towards $2.20: Leading Monday Gains And Driving Crypto ETF Inflows The network’s performance indicators are equally impressive. Solana achieved a revenue of $1.4 billion, demonstrating a 48-fold increase over the past two years. Non-vote transactions reached a new ATH of 33 billion, with a year-over-year growth of 28%. Furthermore, the network averaged 1,054 non-vote transactions per second (TPS) while unique active wallets averaged 3.2 million daily, marking a 50% increase year-on-year. In terms of wallet growth, Solana saw 725 million new wallets. Bitcoin Trading Volume Skyrockets To $33 Billion In terms of asset management, Solana’s stablecoin supply ended the year at $14.8 billion, more than doubling year-on-year. The blockchain facilitated a colossal $11.7 trillion in stablecoin transfers, marking a sevenfold increase over two years. Notably, equities made their debut on Solana in 2025, achieving a supply of $1 billion and trading volume of $651 million. Bitcoin trading volume grew fivefold compared to the previous year, reaching $33 billion and solidifying a new ATH. The total Bitcoin supply also doubled to $770 million. Staked SOL also saw an increase, with 421 million tokens staked, representing an 8% growth and another ATH. Additionally, the introduction of Solana ETFs attracted net inflows of $1.02 billion. SOL-Stablecoin Volume Soars To $782 Billion In the realm of decentralized exchanges, the total DEX volume reached $1.5 trillion, reflecting a 57% year-over-year growth and another all-time high for the network’s annual review. The trading volume for SOL-stablecoins set a record at $782 billion, more than doubling year-over-year. Twelve DEX platforms managed to process over $10 billion in volume, with Raydium leading the way at $347 billion. Furthermore, the artificial intelligence (AI) agent volume reached a new all-time high of $31 billion, along with tokenized asset volume rising to $598 million and project token volume increasing to $86 billion. Related Reading: Bitcoin Reaches $93,000 Amid Renewed Optimism: What To Keep An Eye On This Week In the sectors of memecoins and launchpads, memecoin volume totaled $482 billion, although this represented a slight decline of 10% year-on-year. Launchpads had a successful year as well, with six platforms generating over $1 billion in volume and launchpad revenue doubling year-on-year to $762 million. Trading platforms contributed significantly to Solana’s ecosystem, earning $940 million, a 44% increase compared to the prior year. Moreover, the trading volume processed by these platforms reached $108 billion, up 66% year-on-year. https://www.tradingview.com/x/dPrTZvZ9/ At the time of writing, SOL is trading at $138.50, having recovered by 10% over the past seven days. However, it is still trading 50% below its all-time high of $293, which was reached during last year’s rally. Featured image from DALL-E, chart from TradingView.com
The Solana network has seen its validator count crash by more than 68% over the past three years, falling from thousands of active nodes to just around 800. The massive decline in validators has sparked discussions about whether this could become a threat to the blockchain network or a natural pruning of inactive nodes to increase efficiency. Solana loses 68% Of Its Validators In 3 Years A new report from Criptonocias reveals that Solana has experienced a dramatic decline in the number of its validators, active and non-active, since March 2023. This decrease has raised concerns across the crypto community about the network’s overall health and security. Related Reading: Why Has The Solana Price Been Crashing Since October? This Major SOL Player Is Selling Over the last three years, the Solana network has steadily lost validators, going from 2,500 to 2,100 in November 2022 and now hovering around 800. This decline means the blockchain has lost a total of 1,700 validators. Although this considerable decrease should trigger warning alerts, it could be a result of ledger pruning, which involves removing inactive or redundant nodes to streamline a network and improve its performance without compromising security. Notably, validators are crucial for the operation of a blockchain network, as they run nodes, confirm transactions, and help maintain the integrity of the system. Each validator adds to the diversity of the network and reduces the risk of any single entity gaining excessive control. According to the report, some voices in the Solana ecosystem see the reduction of validators in a positive light. They argue that losing “Sybil validators,” which are nodes pretending to be multiple independent operators but are actually controlled by a single party, can be beneficial. Based on this perspective, having a smaller number of reliable and active validators is healthier than maintaining thousands of nodes that do not contribute meaningfully to the blockchain network. Criptonocias revealed that teams such as Layer 33, which develops infrastructure node tools and provides network services for Solana, point out that many of the validators leaving the blockchain are not Sybils but legitimate node operators. This suggests that the drop in numbers does not automatically equate to improved network quality despite widespread talks about ledge pruning. Notably, the potential impact on the Solana network, whether negative or positive, depends on the independence of the remaining validators and the distribution of power among them. An updated report of the validator count reveals that it has dropped again from 800 to 795. Solana Faces Liquidity Crunch As Profitability Declines Amidst its decline in validators, the Solana network is showing signs of strain as liquidity dries up and profitability declines. On-chain data from Glassnode highlights a troubling trend in the network’s trading activity, with the 30-day average realized profit-to-loss ratio remaining below 1 since mid-November. Related Reading: Solana Welcomes Bearish December, But Pundit Shares Possible Move To $170 This level is typically associated with bear market conditions and points to a growing imbalance between gains and losses among traders. A ratio below 1 also indicates that traders are realizing losses more frequently than profits, underscoring the cryptocurrency’s weakening market sentiment. Featured image from Freepik, chart from Tradingview.com
Solana is experiencing sharp volatility as the broader crypto market faces growing uncertainty. While some analysts expect an expansive move across the market, others remain cautious, pointing to Bitcoin’s difficulty in breaking cleanly into price discovery as a potential headwind. Solana, which has rallied strongly in recent weeks, now shows signs of divergence between its price action and underlying network activity — a signal that often raises questions about sustainability. Related Reading: Short-Term Holder Supply Rises By 559K Bitcoin – New Buyers Flood the Market According to Crypto Onchain, a CryptoQuant analyst, a closer look at Solana’s onchain data reveals a negative divergence between its price and the number of network transactions. This means that while SOL’s price continues to climb, overall transaction activity on the network has dropped significantly. Such patterns are typically viewed as warning signs, suggesting that price momentum might be driven more by speculative trading than organic growth in network usage. Still, market sentiment around Solana remains mixed. Bulls argue that the decline in transaction count could stem from structural changes in the network’s voting activity rather than a true drop in user engagement. As Solana consolidates amid these conflicting signals, investors are watching closely to determine whether this volatility marks a healthy correction — or the early signs of exhaustion in its rally. Solana Activity Declines Despite Strong Price Rally According to data from CryptoQuant, Solana’s network is showing a sharp contraction in transactional activity even as its price continues to rally. The daily transaction volume has fallen from roughly 125 million on July 24, 2025, to around 64 million today, marking a drop of nearly 50%. What makes this decline particularly notable is that it has occurred during a period of strong upward movement in SOL’s price, creating a negative divergence between price momentum and network fundamentals. This divergence presents an important warning signal. In a healthy market environment, price appreciation should ideally be supported by growth in real ecosystem usage — meaning more DeFi activity, NFT transactions, and user transfers. Instead, the data suggests that Solana’s recent rally could be driven more by market sentiment and speculative enthusiasm rather than sustained organic demand on-chain. However, to understand the full picture, it’s necessary to examine which transactions are declining. Historically, 80–90% of Solana’s activity consists of “voting” transactions, which are essential for maintaining network consensus. A reduction in those does not necessarily reflect lower user activity. If, however, the drop stems from reduced DeFi and NFT interactions, it could signal weakening fundamentals behind Solana’s price surge. Analysts are watching closely to determine whether this trend represents a temporary technical adjustment or an early warning of speculative overheating. If user-driven activity continues to decline, Solana could face increased risk of a deeper correction, testing whether the recent price rally is truly sustainable. Related Reading: Coinbase Premium Gap Signals Strongest Bitcoin Accumulation Since ETF Launch – Details Price Analysis: Consolidation After a Strong Rally Solana (SOL) is showing signs of consolidation after an extended rally that pushed its price above the $240 level earlier this month. The chart reveals that SOL has entered a short-term corrective phase, currently trading near $221, down about 3.5% on the day. Despite the pullback, Solana maintains a bullish market structure, as it continues to trade above the key 50-day, 100-day, and 200-day moving averages, which are trending upward — a sign that momentum remains in favor of the bulls. The $210–$215 zone stands out as the immediate support area, coinciding with the 50-day moving average. Holding above this level would confirm that buyers remain in control and could prepare the asset for another attempt to reclaim $240–$250. A successful breakout above these levels could open the path toward $280, where Solana faced resistance in late 2024. Related Reading: Grayscale Stakes 32,000 Ethereum Worth $150 Million – Institutional Demand Grows However, a decisive drop below $210 could trigger deeper corrections, with potential downside targets near $190. Overall, Solana appears to be stabilizing after its recent surge, and maintaining support above the 50-day MA will be key for sustaining bullish momentum as the market awaits confirmation of the next major move. Featured image from ChatGPT, chart from TradingView.com
Solana co-founder Anatoly Yakovenko is facing backlash from the crypto community over his comments about meme coins and non-fungible tokens (NFTs). Yakovenko made these remarks against these tokens despite his network being home to most of the top meme coins by market capitalization. Crypto Community Reacts To Solana Founder’s Comments The crypto community criticized Anatoly Yakovenko following his X post, in which he described meme coins and NFTs as “digital slop” and ones that have no intrinsic value. The Solana founder added that, like a mobile game loot box, people spend $150 billion a year on mobile gaming, in reference to his ideology about meme coins and NFTs. Related Reading: These Two Bearish Scenarios Put Solana Price At $162 After Fakeout Crypto marketer Anastasiia Bobeshko described the Solana founder’s comments as being funny, considering the traction that memes have brought into the Solana ecosystem. She further noted that the network made $1.6 billion in the first half of 2025 thanks to these meme coins. Another member of the crypto community, Ethereum developer Hanniabu, had earlier echoed a similar sentiment, suggesting that the network would be nothing without meme coins. Null, a member of the BONK community, declared that the Solana network would have never been where it is today without meme coins. Yakavenko replied sarcastically, saying, “Absolutely. Without lootboxes, iOS would have negligible revenues for Apple.” Meanwhile, Crypto community member Art Chick asked the Solana founder if he had a problem with memecoin traders spending $150 billion a year on his chain, but they don’t see it as mobile gaming. Yakovenko responded and alluded to an earlier reply in which he explained that what is important is the need to monitor data, fix problems, use snipers, and work towards sandwich-resistant market implementations. Difference Between Solana and Base Meme Coins It is worth noting that the Solana founder’s comment about meme coins stemmed from when he criticized a comment from Base’s lead developer Jesse Pollak, who suggested that Zora meme coins (which are Base tokens) are more valuable than those from Solana’s Pump.fun. In response, Yakovenko asked Pollak if Zora coins have any claims on future cash flows from creators, something which Pump.fun has. Related Reading: Top Meme Coins Stealing The Spotlight As Bitcoin Price Hits $118,000 ATH Pollak then clarified that each coin’s value depends on their fundamentals, which is why he believes that not all meme coins are the same. However, the Solana founder doesn’t believe meme coins as a whole have any “intrinsic value.” Despite his comment, these meme coins, especially the top ones like Fartcoin, BONK, PENGU, and TRUMP, continue to contribute to a significant amount of the daily trading volume on the network. Notably, the Solana price surged to a new all-time high (ATH) of $294 in January, around the time the TRUMP meme coin first launched. SOL witnessed a significant surge in its demand at the time, with investors requiring the altcoin to purchase the meme coin. At the time of writing, the Solana price is trading at around $183, down over 5% in the last 24 hours, according to data from CoinMarketCap. Featured image from Adobe Stock, chart from Tradingview.com
Solana has rallied more than 22% since last Thursday, riding the wave of renewed bullish momentum across the broader crypto market. As Bitcoin pushes toward all-time highs and Ethereum breaks key resistance levels, Solana has followed suit with impressive strength. The price surged to a local high of $181 before encountering resistance, where it now consolidates just below that mark, searching for support to fuel the next leg higher. Related Reading: Ethereum Hits Major Level After Biggest Weekly Candle In Years – What Comes Next? While price action cools at a pivotal level, on-chain data shows significant growth in Solana’s user base. According to Glassnode, the number of wallets holding 0.1 SOL or more has surged to 11.04 million in the past two weeks. This rapid increase in smallholder wallets points to a rising wave of adoption and network participation, particularly as interest in altcoins intensifies. Solana’s consolidation just under $181 may act as a healthy pause before a continuation if bullish momentum persists. With the market heating up and retail interest returning, the current price structure could offer the foundation for a strong breakout in the coming sessions. The combination of price performance and rising user engagement suggests Solana may be positioning for a larger role in the next phase of the bull cycle. Solana Holds Key Support As Wallet Growth Signals Optimism Solana is now facing a crucial test as it consolidates just below the $181 resistance zone. After a sharp 22% rally over the past week, bulls must defend current levels to validate the uptrend and sustain momentum. Holding above the $170–$175 support range would confirm strength and could pave the way for a renewed push toward the $200 level. However, the path forward isn’t without risk. The broader macroeconomic environment remains fragile, with persistent fears of a global slowdown and continued uncertainty around inflation and interest rate policy. Despite these headwinds, the crypto market is staging a powerful recovery, and Solana is among the top performers. This rally may be more than just a short-term bounce—it could mark the early stages of a larger bullish phase with significant upside potential. Investor sentiment is improving, and so is user engagement across key ecosystems. Top analyst Ali Martinez shared compelling on-chain data that reinforces this perspective. According to Glassnode, the number of wallets holding 0.1 SOL or more has surged to 11.04 million over the last two weeks. This rapid growth in smaller holders suggests growing retail interest and a widening user base—critical indicators for long-term strength. If bulls can maintain control at current levels and macro conditions don’t worsen, Solana could be poised for a major move. The combination of technical momentum and on-chain engagement provides a strong foundation for the next leg higher. All eyes are now on whether the $181 resistance breaks—or if Solana needs more time to build strength before the next phase of the rally begins. Related Reading: Ethereum Recovery Gains Strength: Massive Comeback Above Key Support Solana Faces Resistance As Price Pulls Back To Retest Support Solana (SOL) is consolidating just below the $181 level after a strong 22% rally from last week. As shown in the chart, price action surged above both the 200-day EMA ($161.88) and 200-day SMA ($181.11), signaling renewed bullish momentum. However, the current pullback from $180 to around $173.48 shows that the $181 level is acting as a key resistance, which has previously served as a rejection zone multiple times in the past. Volume remains healthy, and the recent move shows strong market participation, but bulls now need to hold the $170–$172 range to maintain control. A successful retest of this area as support could set the stage for a breakout above $181. Failing to hold above this zone, however, could trigger a correction back to the $160–$165 region, near the 200 EMA. Related Reading: HYPE Bulls Regain Control After Sharp Recovery – Approaching Yearly Highs? Technically, SOL is attempting to break a multi-month downtrend and is forming a higher high structure for the first time since late December. The convergence of the moving averages suggests a pivotal moment. If buyers step in with conviction, a move toward $200 becomes likely. Until then, traders will closely watch the $181 level for a decisive breakout or rejection. Featured image from Dall-E, chart from TradingView
Solana is facing mounting selling pressure, trading at its lowest level since September 2024 following yesterday’s market-wide correction. Extreme fear continues to grip the market as SOL fails to find strong support, with bears maintaining control since the cryptocurrency hit its all-time high back in January. Since then, Solana has retraced over 55%, leaving investors uncertain about its short-term prospects. Related Reading: XRP Breaks Down Below Key Demand – Analyst Expects A Drop To $1.65 The broader crypto market remains under pressure, with altcoins struggling to regain bullish momentum. Analysts warn that further declines could be on the horizon if SOL fails to hold key levels. Crypto expert Ali Martinez shared on-chain metrics on X, revealing that Solana’s transfer volume has plummeted dramatically. According to the data, Solana’s transfer volume has dropped from $1.99 billion in November 2024 to just $14.57 million today. This significant decline suggests a steep drop in network activity and interest, raising concerns about the current state of the Solana ecosystem. With bearish sentiment dominating the market and on-chain activity slowing, the coming days will be crucial for SOL. If bulls fail to defend key support levels, Solana could see further downside. However, a strong recovery in volume and price action could indicate renewed interest and potential for a reversal. Solana Struggles Below $150 as Bears Maintain Control Solana is facing significant selling pressure, struggling to break above the $150 mark as bears dominate price action. The broader market sell-off has taken a heavy toll on SOL, with meme coins experiencing some of the steepest declines. Solana, which previously benefited from the meme coin hype cycle, is now seeing a major pullback as speculation fades. Related Reading: Litecoin Trading Activity Increases Over The Past Month – Potential LTC ETF Draws Speculation The price action remains weak as Solana trades below key demand levels that once sustained its long-term bullish structure. Bulls have lost momentum, failing to establish a strong recovery, while bears continue to drag the entire market down. If SOL fails to hold above current demand levels, further downside could be expected in the short term. Martinez’s on-chain data highlights a troubling trend for Solana’s network activity. According to Glassnode, Solana’s transfer volume has plummeted from $1.99 billion in November 2024 to just $14.57 million today. This dramatic drop indicates a sharp decline in network usage and trading activity, further reflecting the cooling-off period in meme coin speculation. The coming days will be critical for Solana. If SOL can hold above key demand levels, a recovery phase could begin. However, continued weakness in volume and price action could lead to further declines, making it essential for bulls to reclaim momentum soon. Price Struggles At $140 Amid Selling Pressure Solana (SOL) is trading at $141 after experiencing days of intense selling pressure, struggling more than most altcoins in the current market downturn. The broader crypto market has faced extreme volatility, with many assets seeing sharp declines. However, Solana remains one of the worst-hit, failing to establish strong support or momentum for a potential rebound. If bulls can defend the $140 level, there is a chance for a short-term recovery. Holding above this crucial demand zone could provide the foundation for a push back above key resistance levels. However, sentiment remains weak, and any further downside in Bitcoin or the broader market could send SOL into deeper corrections. Related Reading: Cardano Remains In Consolidation – Expert Projects 25% Price Move If Solana fails to maintain its current support, the next critical level to watch is $130, where buyers may attempt to step in again. However, a sustained breakdown below this mark would increase the risk of further declines into lower demand zones. The coming days will be crucial for Solana’s price action, as investors wait to see whether bulls can reclaim momentum or if bears will continue to drive the price downward. Featured image from Dall-E, chart from TradingView
Solana (SOL) recently lost its key support zone amid the controversial Libra (LIBRA) token launch and crash. The cryptocurrency has dropped over 12% in the last three days and some analysts suggest it risks a deeper correction to monthly lows. Related Reading: Cardano Price Eyes Impulse Move After Bearish RSI Divergence Was Invalidated, Here’s The Target LIBRA Token Crashes Solana’s Party The Solana network has been the talk of the town this cycle due to the memecoin frenzy, as it has been the go-to chain for these projects. The cryptocurrency has also been one of the leading tokens over the last year, outperforming most altcoins in 2024. Since 2025 started, SOL has shown strength despite the repeated market retraces, holding above key levels, quickly bouncing back, and even hitting its latest all-time high (ATH) of $295 nearly a month ago. Nonetheless, the most recent controversial launch of a Solana-based token has sent SOL’s price into a three-day pullback. On Friday, the Viva La Libertad project was announced alongside the Libra token, receiving the endorsement of Argentina’s President Javier Milei. The project aimed to “encourage Argentina’s economic growth by funding small businesses and startups” and surged to a $4.5 billion market capitalization following the president’s X post. However, it crashed 94% after the team wallets and insiders sold over $100 million worth of LIBRA at the token’s peak, resulting in President Milei’s distancing from the project. After the Libra crash, market sentiment shifted, with some community members expressing exhaustion from the numerous memecoin scams launched in the Solana network during the cycle. As a result, SOL’s price dropped to $190 and hovered within this range until Sunday. As more details of the Libra project came out, Solana dropped another 7.8% to the $180 support zone, sending the price to its lowest valuation in two weeks. Solana Loses $180 Support On Monday morning, the cryptocurrency briefly recovered to the $187 level but was rejected from the nearly one-month downtrend resistance line, as trader Crypto Rand noted. To the investor, there is a “Key squeeze over the main $180 support.” Crypto analyst Ali Martinez highlighted that Solana remained within its key range. The $180 to $190 crucial zone holds the post-election breakout level and has been a significant bounce range for the cryptocurrency over the past four months. Nonetheless, SOL fell below its key support zone after President Milei retweeted a post about the Libra token on Monday afternoon. The X post explained the steps to invest in the cryptocurrency, briefly sending LIBRA 60% up before retracing 42% after Milei undid his retweet. Since then, Solana has hovered between the $175 to $178 price range, a 6.6 retrace in the daily timeframe. Is The SOL Season Over? Amid SOL’s recent price action, some analysts have pointed out its chart against Ethereum (ETH). According to Daan Crypto Trades, SOL/ETH will be “an interesting chart to watch for the next few weeks.” The trader explained that SOL interest peaked a month ago when the TRUMP memecoin was launched. The series of “scams, rugs, and grifts” during the weak market has destroyed the “on-chain/meme ecosystem,” which had fueled Solana’s “strong tun-up to that point.” Daan argues that “capital [is] rotating from SOL to ETH for the first in a while,” which could see the SOL/ETH trading pair retesting the 2021 ATH level at 0.058. This level has been “pretty influential this cycle” and was a key bounce point in Q4 2024. Related Reading: Bitcoin’s Big Breakout? Fed’s “Not QE, QE” Just Flipped The Switch Meanwhile, Michaël van de Poppe considered the valuation of SOL/ETH has topped after a “massive wick created a massive bearish divergence and valuations start to drop.” As a result, “ETH season starts over SOL season” and rotation from Solana towards Ethereum has started. The analysts compared the memecoin frenzy to 2020’s DeFi surge, concluding that the SOL “memecoin fiesta has been an inner-circle money printer for a small group, and everybody knows about it now.” Featured Image from Unsplash.com, Chart from TradingView.com
Despite mainstream appeal, the distribution of the Trump memecoins was flashing red flags for investors looking for long-term opportunities.
A new Solana improvement document aims to address the “state growth problem” by introducing a lattice-based hashing function.
Solana faced heightened volatility yesterday, dropping 7% following the Federal Reserve’s announcement of a 25 basis point rate cut and fewer projected cuts for 2024. Despite the sell-off, Solana’s price action remains resilient as it managed to hold above a critical support level, reinforcing confidence in its ability to weather macroeconomic shifts. Related Reading: Ethereum Whales Load Up: Bullish Sign Or Bear Trap? While the market reacted to the Fed’s cautious tone, Solana’s on-chain metrics tell a more optimistic story. The number of daily transactions on the Solana network has surged, nearing 67 million, reflecting growing adoption and sustained network activity. This robust transaction volume highlights Solana’s position as a leading blockchain platform, with developers and users continuing to rely on its scalability and efficiency. Analysts suggest that holding above its key support level could position SOL for a strong rebound, particularly if broader market conditions stabilize. The increased on-chain activity adds to this bullish outlook, signaling that long-term fundamentals remain intact. Solana Holding Key Demand Solana demonstrates resilience in the face of market turbulence, holding above key demand levels around $210 following yesterday’s sell-off triggered by the Federal Reserve’s policy announcements. This critical support level reinforces bullish sentiment for the asset, with many analysts eyeing a breakout on the horizon. Top analyst Jelle recently provided a compelling technical analysis on X, noting that Solana successfully took out the lows, maintained its position above monthly and weekly support levels, and continued to trade within its falling wedge pattern. According to Jelle, this setup suggests a breakout is imminent, with Solana targeting new all-time highs soon. Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana’s network activity. Ali Martinez shared data showing the Solana network nearing 67 million daily transactions, underscoring strong adoption and user engagement. This heightened network activity highlights Solana’s utility and strengthens the foundation for sustained price growth. Related Reading: XRP Consolidation Could End Once It Clears $2.60 – Top Analyst Expects $4 Soon If Solana holds above the $210 level in the coming days, it could trigger a significant rally as bullish momentum builds. Traders and investors are closely watching the asset’s price action for signs of a decisive move, with the combination of strong technical and on-chain indicators pointing toward a potential surge to new highs. Price Action: Liquidity Resting Above Solana is trading at $210, a key level it has held for several days despite broader market volatility. This price point demonstrates solid demand, but holding this level alone won’t ignite the next rally. A decisive push above $240 is critical for Solana to regain bullish momentum. This move would signal renewed strength and pave the way for higher price targets. A crucial intermediate step lies at the $225 mark. If Solana can reclaim this level with conviction, it would likely confirm a bullish trend and set the stage for further upward momentum. This could attract additional buying interest as traders and investors interpret the move as a signal of strength. Related Reading: Ethereum Whales Load Up: Bullish Sign Or Bear Trap? Failing to break above these resistance levels, however, may keep Solana range-bound and limit its ability to capitalize on the recent support it has established. As market conditions continue to evolve, Solana’s ability to push past these key thresholds will determine whether it transitions into a stronger upward trajectory or remains stuck in consolidation. Featured image from Dall-E, chart from TradingView
Leading cryptocurrency asset Solana (SOL) is demonstrating notable renewed price momentum as it aims to challenge several key resistance points. These crucial levels have proven vital for its next major rally to higher levels, possibly to a new all-time high in the upcoming weeks. Price Breakout To Propel Solana’s Value Amid rising market optimism, Negentropic, […]
The Solana network remains one of the leading blockchains in the dynamic crypto sector, drawing in a significant number of users on a daily basis, which has led to a recent notable spike in its transfer volume to unprecedented levels. Solana Sets New Benchmark In Adoption Glassnode, a world-leading on-chain and financial platform, reported that the […]
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