Solana price is at a crucial crossroads that could lead to a major bullish sentiment ahead of further correction in the near future.
The overall demand for SOL-based products, especially memecoins, has bolstered the bullish outlook.
Following the largest crypto liquidations in the history of Bitcoin during the past 24 hours, amounting to over $2.2 billion, Solana was among the heavily impacted altcoins. The large-cap altcoin, with a fully diluted valuation of about $116 billion and a daily average trading volume of about $16.69 billion, dropped over 7 percent in the past 24 hours to trade about $194 on Monday, Feb 3, during the early New York session.
Consequently, Solana price has dropped over 33 percent since hitting its all-time high (ATH), around $293, in mid-Jan 2025. Following the heightened volatility for Solana price in the recent past, more than $85 million was liquidated from SOL-related trading pairs, with over $62 million involving long traders.
What’s Next for Solana (SOL) Price
From a technical analysis standpoint, SOL price is preparing for the much-hyped altseason fueled by a clearer crypto regulatory landscape and rising demand from institutional investors. In the weekly time frame, SOL price, against the US Dollar, rebounded from the previous falling logarithmic trend, which coincided with the 50 Moving Average (MA).
According to popular crypto analyst Ali Martinez, the TD sequential indicator has a buy signal for SOL in the daily time frame. The crypto analyst had previously noted that SOL price has been forming a macro-rising channel in the past year.
This is it! If #Solana $SOL fails to hold above $191, a drop to $138 could be imminent. pic.twitter.com/vwJzHwCMHI
— Ali (@ali_charts) February 3, 2025
This is it! If fails to hold above $191, a drop to $138 could be imminent.
— Ali (@ali_charts)
As a result, Martinez expects SOL price to rebound from the current support level above $191 to enter the thrilling phase of the 2025 bull cycle in the near future. However, the crypto analyst highlighted that SOL price could drop as much as $138 if the altcoin consistently closes below the lower border of the established rising channel.
Market Picture
The Solana network has gradually grown to a DeFi hub backed by mainstream adoption of its memecoin space. As of this writing, Solana’s meme coin space had a market cap of over $12 billion and a 24-hour average trading volume of about $11.4 billion. The of Official Trump and Melania Meme largely shifted the narrative of SOL-based meme coins in the recent past.
According to market data from Defillama, the Solana network recorded a total DEX volume of around $258 billion in January 2025. Remarkably, Solana’s DEX volume was 300 percent higher than Ethereum’s and Binance-backed BSC chain.
The rising confidence in Solana’s ability to handle mainstream adoption of web3 uses has helped secure cash inflow in the recent past. As Coinspeaker , SOL-based investment products registered a net cash inflow of about $4.5 million last week, thus increasing the year-to-day (YTD) cash inflow to around $26 million.