Key Notes

Key Notes:

SOL token drops 9%, reaching $166 amid ongoing investor selloff.Solana’s active addresses have decreased from 18.5 million in November to 8.4 million.Analysts warn that upcoming token unlocks could add further downward pressure on SOL price.

Solana price SOL $173.2 24h volatility: 3.3% Market cap: $84.70 B Vol. 24h: $2.58 B has been spiraling downward, showing weakness against the broader crypto market. The coin has dropped another 9% today, hitting $166 as investors continue their selloff. This sharp decline comes after the Solana-based meme coin LIBRA faced an aggressive pump-and-dump, triggering massive liquidations across Solana’s meme coin sector.

At the time of writing, SOL is trading at $166, marking a 38% drop over the past month. The token has also shed 9% of its market cap in just 24 hours, now sitting at $81.37 billion. This is a steep fall from its January valuation of $127.5 billion.

On-chain data from Glassnode reveals that Solana’s active addresses have dropped from 18.5 million in November to around 8.4 million at the time of writing. New addresses on the network have also declined sharply over the same period. Moreover, the total volume transferred on Solana has collapsed from $2 billion in November to just $26 million, reflecting a sharp drop in network activity.

It is important to note that Solana’s upcoming token unlocks are also concerning investors of further downward pressure. The network is set to see a rise in its circulating supply, with over 15 million SOL tokens, valued at more than $7 billion, expected to enter the market between February and April. This will push Solana’s inflation rate to 4.715%, raising concerns about supply dilution and price instability.

Popular crypto trader RunnerXBT has described the current market conditions as “dangerous” for Solana investors. Meanwhile, notable crypto investor Ted suggested that the capital might rotate into Ethereum instead.

On the daily chart, the MACD line is below the signal line, confirming bearish momentum. There are no immediate signs of a crossover, meaning downward pressure may persist in the short term.

The Relative Strength Index (RSI) currently sits at 29, signaling that SOL has approached oversold conditions. While this could indicate a potential relief bounce, sustained bearish pressure may push it further into the oversold territory.

Meanwhile, the SOL price is trading near the lower Bollinger Band, suggesting increased selling pressure. The bands are widening, indicating rising volatility, which could result in major price swings in either direction.

If SOL manages to hold the $160 support level and sees a surge in buying volume, it could attempt a rebound toward the $175–$180 resistance zone. A breakout above $180 may trigger a push toward $200.

However, if selling pressure intensifies amid the upcoming unlocks, SOL could break below $160, sending the price to the next major support level at $145. A failure to hold this level could result in further declines toward $130.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

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