TLDR
- Solana (SOL) has plunged to $130, its lowest level in five months, dropping 33% over the past month
- Trading volume collapsed by 61%, showing weak buying pressure despite the TD Sequential indicator flashing a buy signal
- $26.55 million in trades were liquidated in 24 hours, with $23.45 million being long positions
- Since January, over $9.5 billion USDC stablecoins were minted on Solana, but most flowed to memecoins instead of SOL
- In February alone, $485 million left the Solana network for Ethereum, Arbitrum, and Binance Smart Chain
Solana has plunged to $130, marking its lowest point in five months and creating tension in the market. The cryptocurrency has suffered a steep 33% decline over the past month, with an 8% drop in the last 24 hours alone. Market participants remain cautious as this price level represents a critical demand zone.
The current price action puts SOL at $128.14, with its market cap shrinking to $65.22 billion. This represents a substantial fall from its stronger position at the beginning of 2025. Since the start of the year, Solana has lost nearly 29% of its value.
The drop below the $200 support level triggered the current downward momentum. Technical indicators are giving mixed signals about the future direction of SOL’s price. The TD Sequential indicator has flashed a strong buy signal, suggesting a potential trend reversal.
However, trading volume has collapsed by 61%, highlighting weak buying pressure. This lack of market participation raises questions about whether a recovery is forming or if further price drops are ahead. The expected “buy-the-dip” response remains absent.
Daily charts show red candlesticks dominating, indicating that profit-taking from Solana’s March rally to nearly $180 continues to affect price action. Adding to concerns, the SOL/BTC pair has plunged to a two-year low, marking this cycle as its weakest performance so far.
Liquidations have hit Solana traders hard. In just the past 24 hours, a total of $26.55 million in trades were wiped out. Most of these were long positions worth $23.45 million, suggesting that traders betting on a price rebound are being caught off guard.
Solana’s Open Interest has edged up 1.63% to $3.95 billion. This rise comes amid weak accumulation patterns. Just last week, Open Interest peaked at $5.31 billion as SOL retested the $180 level, only to drop to $4.20 billion the next day as selling pressure erased 20.45% of its gains.
Memecoins Hurting Network
Liquidity flows present another challenge for SOL. Since January, over $9.5 billion worth of USDC stablecoins have been minted on Solana. However, only a small portion has flowed into the SOL token, with much of it directed toward memecoins instead.
This capital flow pattern has prevented Solana from receiving the price boost it needed. Investor trust has been further damaged by memecoin scams on the network. The Libra token, which received an endorsement from Argentine President Javier Milei, turned out to be a rug pull.
Insiders drained $107 million from the Libra token, causing its price to crash by 94% in just hours. This scam erased approximately $4 billion in investor value and has contributed to negative sentiment around the Solana ecosystem.
Investors are moving funds away from Solana as a result of these issues. In February alone, $485 million left the network, with funds moving to Ethereum, Arbitrum, and Binance Smart Chain instead. This outflow reflects diminishing confidence in the network.
The broader crypto market conditions aren’t helping Solana’s situation. The global cryptocurrency market cap currently sits at $2.71 trillion, down 4.29% in a day. Bitcoin has dropped 5% while Ethereum is down 6%, creating an overall negative market sentiment.
The recent White House Crypto Summit on March 7 was expected to bring optimism to the market. Instead, it appears to have had the opposite effect, with prices falling across major cryptocurrencies since the event.
Despite these challenges, historical precedent shows that the current price level has previously attracted dip buyers looking for discounted entries. This could potentially provide some support for SOL’s price in the coming days.
Bitcoin’s consolidation phase often encourages investors to rotate into altcoins, which might increase demand for Solana. However, this potential support depends on broader market conditions improving in the near term.
