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Why Solana Is Down Today: What’s Driving the 10% Drop and Bearish Sentiment

Why Solana SOL Price Is Down Today.webp.webp

The post Why Solana Is Down Today: What’s Driving the 10% Drop and Bearish Sentiment appeared first on Coinpedia Fintech News

Solana has been among the worst-performing cryptocurrencies in the past 24 hours, plunging 10% to $162. The decline continues as the network experiences lower activity and increasing bearish sentiment. Here are the four key reasons behind Solana’s sharp price drop today.

One major reason behind Solana’s poor performance is its mention in high-profile rug-pull scams. Reports have surfaced linking a Solana wallet to multiple fraudulent projects, including Libra (LIBRA) and Melania (MELANIA), both of which have ties to political figures. 

These projects generated massive profits through manipulative tactics before disappearing, leaving investors at a loss. Because of this, people are losing trust in Solana.

Sharp Decline in Network Activity

Another concerning factor is the fall in Solana’s on-chain activity. The number of users on the Solana network has dropped from 18.5 million in November to 8.4 million, a 55% fall. 

Also, total money moved on Solana has dropped from $2 billion to $26 million. With fewer people using it, Solana’s price is struggling.

Upcoming Token Unlocking

Investors are also bracing for a large supply increase in the coming months. Over 15 million SOL tokens, worth over $7 billion, are set to be unlocked between February and April. 

This increase in circulating supply could create more selling pressure, further weakening Solana’s price. Market analysts have advised caution, as the unlocking event could bring additional volatility.

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  • Also Read :
  •   Capital Inflows into Bitcoin and Ethereum Fall, But ETH Price Remains Strong—What’s Next for BTC Price? 
  •   ,

Solana’s Struggle Against Bitcoin and Ethereum

Solana is also showing weakness against major cryptocurrencies like Bitcoin and Ethereum. Since early February, the SOL/ETH trading pair has dropped by 28%, indicating that Ethereum is gaining strength over Solana. 

Furthermore, data from LookOnChain shows that $772 million worth of stablecoins have exited Solana’s ecosystem in just a week, signaling reduced trust among investors.

Until confidence in the network is restored and trading volumes pick up, SOL may continue to face downward pressure.

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FAQs

Will the SOL price reach $350 by the end of 2025?

According to our Solana price prediction, the altcoin might chug up to a maximum of $400 by 2025.

How high can Solana go by the end of 2030?

With a potential surge, the price of SOL could reach a maximum of $1,351 by 2030.

How much would the price of Solana be in 2040?

As per our latest SOL price analysis, the Solana could reach a maximum price of $11,698.

Kaynak : CoinPedia

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