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Solana (SOL) faces critical resistance as its recent performance reveals significant declines, illustrating the asset’s ongoing struggles in a turbulent market.
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As on-chain metrics indicate a staggering 99% drop from peak transfer volumes, many investors are questioning the future viability of SOL amidst increasing selling pressure.
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According to market analyst Ali Martinez, “The current trend poses a serious risk to Solana’s stability, necessitating immediate attention from traders.”
Solana struggles with a 99% drop in on-chain volume, raising concerns about its market position. Investors await a crucial turning point for SOL’s future.
Solana’s Volume Faces a Critical Make-or-Break Moment
For SOL, holding critical support levels has never been more crucial. With 100% of its post-election gains erased, the stakes are at an all-time high.
Since hitting its $295.83 peak following the TRUMP memecoin-driven surge, Solana has failed to establish a solid support base, leaving it exposed to extreme downside risk.
Meanwhile, crypto analyst Ali Martinez highlighted a severe drop in Solana’s volume metrics, further weakening its price structure.
Source: Glassnode
Trading at $139.70 at press time, SOL now faces a critical inflection point. A successful flip of this level into support is essential for restoring market confidence.
Failure to do so could force long-term holders (LTHs) to capitulate, especially as Solana has already erased nearly $40 billion in market cap this month alone.
While Solana’s volume data seemed to suggest no immediate supply crunch, excess liquidity remains a key overhang. With nearly $1 billion in Total Value Locked (TVL) evaporating, a sustained recovery may remain elusive – at least in the near term.
What’s Next for Solana?
In previous cycles, bulls have failed to step in during dips, keeping SOL on a persistent pullback. This means weak hands have been shaken out, potentially setting the stage for a fresh cycle high.
Source: TradingView (SOL/USDT)
Solana’s on-chain volume metrics are reinforcing this outlook, surging by double digits to $5.28 billion.
However, further confirmation is needed in the coming days to establish a sustained trend reversal. If buying momentum fails to hold, the 99% decline in Solana’s transfer volume, combined with weak bullish support, could turn this move into a short-term profit-taking opportunity rather than a long-term accumulation phase.
For a meaningful rebound, strong accumulation is essential for inducing a supply shock while absorbing excess liquidity in the market.
Solana’s volume metrics will be a key indicator to watch for confirmation of a potential trend reversal in the coming days.
Conclusion
As Solana navigates a challenging market environment, the next few days are crucial to determining its future trajectory. Market participants should remain vigilant to volume indicators and the reaction at support levels to gauge whether SOL can recover or if it will face prolonged downward pressure.
