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.
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.
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.
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
Read the full article here