Ah, the illustrious Solana, once a darling of the crypto realm, now finds itself in a rather unfortunate predicament, tumbling down a staggering 9.3% today, landing at a mere $166. This unfortunate descent coincides with the antics of the Solana-based meme coin LIBRA, which has become the poster child for pump and dump schemes, sending shockwaves through the meme coin universe. It appears that traders, like disenchanted lovers, are drifting away, as on-chain data reveals a disheartening decline in network activity.
Solana Price Under Pressure as Network Activity Plummets
Our astute crypto analyst, Ali Martinez, has unearthed a rather alarming trend: the number of active addresses on the Solana network has plummeted from a robust 18.5 million in November to a paltry 8.4 million today—a decline of nearly 55%! One can almost hear the collective gasp of disbelief from the crypto community. This dramatic drop has cast a long shadow of negativity over Solana’s price action, as if the universe itself conspired against it.
Moreover, the total volume transferred on the Solana network has taken a nosedive, plummeting from a staggering $2 billion in November to a mere $26 million. Such a stark contrast raises eyebrows and concerns about the network’s current adoption and utility, leaving us to ponder: what happened to the good old days of crypto exuberance?
SOL Action Moving Ahead
Since the dawn of 2025, Solana has been ensnared in the icy grip of bears, shedding more than $80 since its January peak. Crypto market analyst IncomeSharks has observed that traders, in a moment of wishful thinking, mistook Solana’s price action for bullish consolidation, when in reality, it resembles a “blow off top with a massive bear div showing momentum stalling.” Oh, the irony!
The current price action places SOL at levels reminiscent of early January, effectively erasing the gains made during the year’s opening rally. With the SOL price losing the crucial support of $175, it may very well correct further down to the $160 level. But fear not! Any positive news regarding the elusive Solana ETF approval could serve as a much-needed catalyst. Fingers crossed! 🤞
As of this very moment, the SOL price is trading 9.28% down at $166.99, with daily trading volumes surging by 75% to $4.58 billion. Furthermore, Coinglass data reveals that SOL futures open interest has dropped 2.5% to $5.79 billion, while the 24-hour liquidations have skyrocketed to $32.94 million, of which a staggering $28.9 million is in long liquidation. Talk about a rollercoaster ride! 🎢
Negative Sentiment Around SOL Unlocking Peaks
Market analysts, in a rare moment of consensus, have been advising investors to steer clear of Solana (SOL) for the time being, especially with the impending token unlocking set for March 1. Solana is poised to witness a significant increase in its circulating supply over the next three months (February, March, and April). With a current token inflation rate of 4.715%, more than 15 million SOL tokens—valued at over $7 billion—are expected to flood the market during this period. It’s like opening the floodgates of a dam, and we all know how that ends!
Crypto trader RunnerXBT has issued a cautionary tale, declaring this a “dangerous” time to invest in Solana. With the upcoming token unlock event looming, the trader pointed out that firms such as Galaxy, Pantera, and Figure stand to secure unrealized gains of $3 billion, $1 billion, and $150 million, respectively, once the SOL unlock takes place. It’s a veritable feast for the opportunistic! 🍽️
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2025-02-18 10:19