Solana (SOL) has been hit hard by the latest market-wide downturn, registering a sharp 15.56% single-day drop and breaking below its crucial $150 support level. Among major cryptocurrencies, SOL has led the decline, with a nearly 20% weekly loss, erasing all post-election gains.
Adding to the bearish sentiment, Solana’s on-chain transfer volume has plummeted to $14.5 million, marking a staggering 99% drop from its $2 billion peak in November. With volume cooling off, investors are left wondering whether SOL is poised for a deeper correction or if buyers will step in to defend key support levels.
Solana’s Volume Faces a Make-or-Break Moment
For Solana, the ability to hold critical support levels has never been more important. Since its explosive rally to $295.83—fueled by the TRUMP memecoin surge—SOL has struggled to establish a solid support base, leaving it vulnerable to extreme downside risk.
Crypto analyst Ali Martinez has flagged a severe drop in Solana’s volume metrics, further weakening its price structure. As of now, SOL is trading at $139.70, sitting at a crucial inflection point. A successful reclaim of this level as support is essential to restoring investor confidence. Failure to do so could lead to long-term holders capitulating, especially after SOL shed nearly $40 billion in market cap this month alone.
#Solana $SOL transfer volume has plummeted from $1.99 billion in November 2024 to $14.57 million today! pic.twitter.com/sDIb8xwH1e
— Ali (@ali_charts) February 26, 2025
Despite the drop, Solana’s Total Value Locked (TVL) remains under pressure, with nearly $1 billion evaporating. Without strong accumulation, a swift recovery remains uncertain in the near term.
What’s Next for Solana?
Historically, Solana has struggled to find strong buying pressure during corrections, leading to prolonged pullbacks. However, weak hands may have been shaken out, potentially setting the stage for a fresh rally.
Encouragingly, Solana’s on-chain volume has surged by double digits to $5.28 billion, suggesting a possible shift in momentum. Still, further confirmation is required to validate a trend reversal. If buying pressure falters, the sharp decline in Solana’s transfer volume could indicate a short-term profit-taking opportunity rather than the start of an accumulation phase.
Also Read: Solana (SOL) Faces Capitulation with RSI Below 30: Will a Price Rebound Happen Soon?
For a sustained rebound, strong accumulation is crucial to induce a supply shock and absorb excess market liquidity. Solana’s volume metrics will be a key indicator to watch in the coming days for signs of a potential trend reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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