- Solana’s price faces selling pressure as network activity has dropped by 55% since November.
- Crypto analyst RunnerXBT warns of further price correction, with SOL losing key support at $175.
Looks like Solana’s hitting some rough waters lately! T he price has taken a tumble back down to $168, wiping out those nice gains we saw at the start of the year. And the timing’s not great, there’s this big token unlock coming up on March 1 that’s got everyone a bit nervous.
What’s catching people’s attention is how quiet things have gotten on the Solana network. The usual buzz of activity has cooled off. There are fewer active wallets and transactions than before, which has got market watchers raising some red flags, and that’s making investors pretty uneasy about where SOLANA(SOL) might be headed next.
Network Activity Plummets
On-chain data reveals a dramatic drop in Solana’s network activity. Crypto analyst Ali Martinez highlighted that active addresses on the network have fallen by nearly 55%, from 18.5 million in November to just 8.4 million today. Additionally, the total volume transferred on the network has plummeted from $2 billion to $26 million during the same period.
He stated , “The total volume transferred on the #Solana $SOL network has dropped from $2 billion in November to just $26 million today!” These declines raise concerns about Solana’s adoption and utility , contributing to the bearish sentiment surrounding SOL.
Price Correction and Market Sentiment
The rough patch for Solana just keeps getting rougher. Since January, it’s shed a whopping $80 off its price tag. Things got even worse when it slipped below what traders call a crucial level at $175, and some analysts think it could slide all the way down to $160.
The numbers behind the scenes aren’t looking too rosy either. Their futures open interest is down by 2.5%, and we’re seeing a ton of forced sales, equalling $28.9 million worth of long liquidations. And this is all happening while those Solana-based meme coins are going through their lawsuits. LIBRA for instance just went through a classic pump-and-dump scenario.
Upcoming Token Unlock Adds Pressure
Market analysts are advising caution as Solana prepares for a significant token unlock on March 1. Over the next three months, more than 15 million SOL tokens, worth over $7 billion, are expected to enter the market. This increase in supply could keep SOL’s price under pressure.
Crypto trader RunnerXBT warned that this is a “dangerous” time to invest in Solana, as firms like Galaxy, Pantera, and Figure stand to secure billions in unrealized gains once the tokens are unlocked. He stated , “Be very careful buying $SOL dip. Yes, it’s been one of the top gainers/performers of this cycle, but the amount of shit thats coming up to the surface now is really badly damaging to SOL ecosystem. The response from Jupiter team is a massive joke but lets see if Meow can top it”
Today, SOL is trading at $168.65, down 8.53% in the last 24 hours. Daily trading volumes have surged by 75% to $5.28 billion, reflecting heightened market activity. However, with bearish momentum in the works, investors are advised to tread carefully in the coming weeks.
