Solana’s digital asset, known as SOL, experienced a sizable 15.56% decline in a single day due to market pressures driven by tariffs, causing it to drop below its levels before the recent election and breaking through the crucial support level of $150. Notably, SOL has been leading the downturn among high-cap cryptocurrencies, with a weekly decrease of nearly 20%.<\/p>\n
Additionally, the on-chain transfer volume for SOL plummeted to $14.5 million, indicating a remarkable 99% decline from its peak of $2 billion in November.<\/p>\n
Given the cooling on-chain metrics, investors wonder whether SOL is heading towards a deeper correction or if buyers will intervene to protect vital support levels.<\/p>\n
Preserving essential support levels is now more critical than ever for SOL. With all gains made post-election wiped out, the risks have never been higher.<\/p>\n
Since reaching its peak of $295.83 following the surge fueled by the TRUMP memecoin, Solana has struggled to establish a strong support base, leaving it vulnerable to significant downside risks.<\/p>\n
Furthermore, crypto analyst Ali Martinez pointed out a significant reduction in Solana’s volume metrics, further destabilizing its price outlook.<\/p>\n
Currently trading at $139.70, SOL is at a pivotal juncture. Successfully converting this level into support is vital for restoring market trust.<\/p>\n
A failure to do so might compel long-term holders (LTHs) to give in, especially as Solana has already lost almost $40 billion in market capitalization just this month.<\/p>\n
While the volume data for Solana doesn’t immediately indicate a supply shortage, there remains an excess of liquidity, with around $1 billion in Total Value Locked (TVL) vanishing, making a sustained recovery appear challenging in the short run.<\/p>\n
In previous cycles, bullish investors have hesitated to intervene during market downturns, leading to a continual pullback in SOL. This has likely cleared out weak investors, setting the stage for a potential new cycle peak.<\/p>\n
The on-chain volume metrics for Solana are reinforcing this perspective, showing a surge to $5.28 billion.<\/p>\n
However, additional confirmation is necessary in the upcoming days to establish a lasting trend reversal. If the buying momentum weakens, the 99% drop in Solana’s transfer volume, coupled with feeble bullish support, could steer this development towards a short-term profit-taking phase rather than a prolonged accumulation period.<\/p>\n
To witness a substantial recovery, robust accumulation is crucial to trigger a supply shortage and absorb excess market liquidity.<\/p>\n
Monitoring Solana’s volume metrics will be vital for confirming any potential trend reversal in the days ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"
Solana’s digital asset, known as SOL, experienced a sizable 15.56% decline in a single day due to market pressures driven by tariffs, causing it to drop below its levels before the recent election and breaking through the crucial support level of $150. Notably, SOL has been leading the downturn among high-cap cryptocurrencies, with a weekly<\/p>\n","protected":false},"author":1,"featured_media":41835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=41834"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41834\/revisions"}],"predecessor-version":[{"id":41837,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41834\/revisions\/41837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/41835"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=41834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=41834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=41834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}