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Solana Sentiment Falls Off A Cliff After A 40% Drop In 4 Weeks: What’s Next?

Solana is down, sliding 45% from all-time high. Will SOL continue posting more losses ahead of the FTX Estate liquidation in early March?

By Dalmas Ngetich

Last Updated: Feb 20, 2025

Fact checked

By Sam Cooling

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Solana price is down, sliding 45% from all-time high. Will SOL price posts more losses ahead of the FTX Estate liquidation in early March?
Disclaimer Icon
Disclaimer
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Amid tumbling Pump.Fun volumes post-Milei, the shine of Solana appears to be dimming if the price action over the past month is any indication.

Once riding high on meme coin mania, warming regulations, and even the potential of the first spot Solana ETF going live by the end of the year, SOL is now on a free fall.

In just four weeks, SOL holders have endured brutal price swings, which have seen the coin lose over 40%, forcing it below critical support levels.

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Solana Price Drops 40% In 1 Month: Will SOL ETFs Reignite SOL Price Rally?

The latest Coingecko data shows that Solana is trading at around $170,  below $175, a critical support level marking the lows of December and January 2025.

From its price action, the coin now risks further losses after an encouraging uptick in Q4 2024 that saw it peak at $295 on January 25. With prices under pressure, it looks like more SOL holders could capitulate, fueling panic selling.

As Solana faces renewed selling pressure, investor sentiment is also nosediving. The latest data from Santiment, an on-chain analytics platform, reveals that investor sentiment is at its lowest monthly level. At that point, SOL prices had cooled off, dropping to around $230.

The collapse marked two days of steady losses after prices shot higher to $295 on January 19, two days after President Donald Trump’s team launched the “Official Trump” meme coin ahead of his inauguration on January 20.

Although prices briefly recovered as millions turned to meme coin trading on the scalable chain, they turned lower as sellers stepped in from January 26. Since then, SOL has had one-way traffic.

(SOLUSDT)

As expected, traders are increasingly frustrated now that the coin is struggling for momentum and risks extending losses as crypto prices come under renewed selling.

Bitcoin and Ethereum have struggled to break key resistance levels, trending slightly above critical support levels.

FTX Estate To Dump SOL on March 1 Amid Network Reliability Concerns

Unlike these two, Solana’s steep decline is due to several factors. One is the expectation of a spike in supply once the FTX estate unlocks 7.5 million SOL on March 1.

This extra infusion of SOL could see the token plunge as investors brace for potential liquidation by the FTX estate.

Additionally, there are concerns that the turmoil following the drop of the LIBRA meme coin could shake the confidence of ardent traders. Javier Milei, the President of Argentina, even promoted LIBRA. After rising to over $4 billion in market cap, prices flash crashed within hours in what many say was another rug pull on Solana.

Beyond meme coins, Solana faces even more criticism, especially in developing DeFi protocols.

Analysts observe that multiple dApps on Solana are struggling due to unusually high transaction failure rates, raising concerns about whether the network can be a reliable hub for DeFi activities.

Unfortunately, even with the high number of transactions failing, validators continue to profit at the expense of users.

Solscan data paints a grim picture. Out of over 151 million transactions on Meteora, only 5.5% are successful.

Only 17.1% of Jupiter’s more than 176 million transactions go through. On Raydium, where most meme coins list after graduating from Pump.fun, slightly more than half of the 159 million transactions are successful.

EXPLORE: Crypto Trends For Bullrun – January 2025

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Solana Falling As Sentiment Deteriorates

  • Solana is down 40% from all-time highs
  • FTX Estate to dump SOL in early March
  • Critics slams Solana, claims network unreliable to power DeFi

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Dalmas Ngetich
Dalmas Ngetich
Crypto Journalist

Dalmas is an experienced journalist with over a decade in crypto, technology, and blockchain. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, and Entrepreneur, among others. He is passionate about crypto... Read More

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