Solana (SOL) price drops below $130 for the first time since October 2024

SOL is experiencing heavy downward pressure, dropping below $130 for the first time since October 2024. The cryptocurrency has fallen 15.56% in a single day amid market-wide selling.

Solana (SOL) is facing strong selling pressure, dropping below the $130 level for the first time since October. The cryptocurrency has fallen 15.56% in a single day amid market-wide selling, reaching $126 at press time.

The sharp decline comes just days before the scheduled unlock of 11.2 million SOL tokens from the FTX bankruptcy estate. This unlock, worth approximately $1.3 billion at current prices, is set to occur on Thursday.

Among high-cap assets, SOL has led the market downturn with a nearly 20% weekly decline. The cryptocurrency has now erased 100% of its post-election gains, breaking below the critical $150 support level that had previously held firm.

On-chain transfer volume for Solana has collapsed dramatically. Current volume sits at just $14.57 million, marking a staggering 99% decrease from its November peak of $1.99 billion.

The FTX bankruptcy estate has been gradually selling off assets to repay creditors. So far, 41 million SOL tokens have been sold to firms including Galaxy Digital, Pantera Capital, and Figure.

As the upcoming token unlock approaches, market participants are expressing concern that it could introduce additional selling pressure. This worry has contributed to the recent price weakness, pushing SOL down 27% over the past week.

Technical indicators suggest more downside risk may lie ahead. Solana has now broken below the crucial support level of $127, with the next major support zones at $110 and $100.

The Relative Strength Index (RSI) for Solana currently sits at 23.92. This reading indicates severe oversold conditions, though traders note this doesn’t always signal an immediate price recovery.

Bollinger Bands show high volatility in SOL trading. Red candles continue to dominate the charts, suggesting strong and persistent selling pressure across exchanges.

Network Activity Decline

Activity across Solana’s decentralized finance ecosystem has also declined. The network’s total value locked (TVL) has dropped from $12 billion in mid-January to $6.8 billion as of February 28, according to data from DeFiLlama.

Demand for SOL has weakened following a downturn in memecoin trading. Earlier this year, the TRUMP memecoin and other similar tokens had driven significant trading volumes on the Solana network.

#Solana $SOL transfer volume has plummeted from $1.99 billion in November to $14.57 million today! pic.twitter.com/sDIb8xwH1e

— Ali (@ali_charts) February 26, 2025

Open interest in Solana futures has decreased substantially. Coinglass data shows a reduction from $7.4 billion in mid-January to $3.7 billion on February 28, indicating a major reduction in leveraged positions.

Some institutional interest remains in Solana’s ecosystem. Firms like VanEck and Franklin Templeton have filed for Solana ETFs, though approvals for these products may take considerable time.

For a meaningful price recovery, analysts suggest strong accumulation would be needed to absorb the excess liquidity in the market. Volume metrics will be a key indicator to watch for any potential trend reversal.

If SOL fails to reclaim the $130 level in the coming days, technical analysts believe the downtrend may accelerate. This could put the $100 price level in focus as the next major support zone.

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