- Solana’s volume has fallen from $1.99 billion in November to just $14.57 million
- The next few days will be pivotal for Solana.
Solana [SOL] suffered a sharp 15.56% single-day drop amid the tariff-driven market sell-off, breaking below its pre-election levels and breaching the critical $150 support. In fact, among high-cap assets, SOL has led the downturn with a nearly 20% weekly decline.
Meanwhile, on-chain transfer volume collapsed to $14.5 million too, marking a staggering 99% plunge from its $2 billion peak in November.
With on-chain metrics cooling off, is SOL facing a deeper correction, or will buyers step in to defend key support levels?
Solana’s volume faces a critical make-or-break moment
For SOL, holding critical support levels has never been more crucial. With 100% of its post-election gains erased, the stakes are at an all-time high.
Since hitting its $295.83 peak following the TRUMP memecoin-driven surge, Solana has failed to establish a solid support base, leaving it exposed to “extreme” downside risk.
Meanwhile, crypto analyst Ali Martinez highlighted a severe drop in Solana’s volume metrics, further weakening its price structure.
Source: Glassnode
Trading at $139.70 at press time, SOL now faces a critical inflection point. A successful flip of this level into support is essential for restoring market confidence.
Failure to do so could force long-term holders (LTHs) to capitulate, especially as Solana has already erased nearly $40 billion in market cap this month alone.
While Solana’s volume data seemed to suggest no immediate supply crunch, excess liquidity remains a key overhang. With nearly $1 billion in Total Value Locked (TVL) evaporating, a sustained recovery may remain elusive – At least in the near term.
What’s next for Solana?
In previous cycles, bulls have failed to step in during dips, keeping SOL on a persistent pullback. This means weak hands have been shaken out, potentially setting the stage for a fresh cycle high.
Source: TradingView (SOL/USDT)
Solana’s on-chain volume metrics are reinforcing this outlook, surging by double digits to $5.28 billion.
However, further confirmation is needed in the coming days to establish a sustained trend reversal. If buying momentum fails to hold, the 99% decline in Solana’s transfer volume, combined with weak bullish support, could turn this move into a short-term profit-taking opportunity rather than a long-term accumulation phase.
For a meaningful rebound, strong accumulation is essential for inducing a supply shock, while absorbing excess liquidity in the market.
Solana’s volume metrics will be a key indicator to watch for confirmation of a potential trend reversal in the coming days.
