Solana’s Volume Drops Significantly

• Solana’s trading volume has plummeted from $1.99 billion in November to just $14.57 million.
• The next few days are critical for Solana.

Solana (SOL) experienced a sharp 15.56% drop in a single day due to a market sell-off spurred by tariffs. This decline pushed SOL below its pre-election levels and below the vital $150 support level. Among high-cap assets, SOL has led the downturn with an almost 20% decline over the past week.

On-chain transfer volume also tanked to $14.5 million, representing a staggering 99% fall from its November peak of $2 billion.

With on-chain metrics cooling off, one wonders if SOL is headed for a deeper correction or if buyers will intervene at these key support levels.

Critical Support for Solana

For SOL, maintaining critical support levels has never been more important. With its post-election gains completely wiped out, the stakes have reached an all-time high.

After peaking at $295.83 due to the TRUMP memecoin surge, Solana has struggled to build a reliable support base, exposing it to extreme downside risks.

Analyst Ali Martinez noted the significant decline in Solana’s volume metrics, which further undermines its price structure.

As of the latest update, SOL is trading at $139.70 and faces a crucial turning point. Successfully turning this level into support is essential for restoring market confidence.

Failure to do so could lead long-term holders to capitulate, especially given that Solana has lost nearly $40 billion in market cap this month alone.

While Solana’s volume data suggests no immediate supply crunch, excess liquidity looms large. Nearly $1 billion in Total Value Locked (TVL) has evaporated, making a sustained recovery seem unlikely in the short term.

What Lies Ahead for Solana?

In past cycles, bulls have not stepped in during dips, leaving SOL in a continuous decline. This situation has likely shaken out weaker hands but may set the stage for a new cycle high.

Solana’s on-chain volume metrics have recently surged by double digits to $5.28 billion, indicating some positive momentum.

However, further confirmation is needed in the coming days to establish a consistent trend reversal. Without strong buying momentum, the 99% drop in Solana’s transfer volume may turn this phase into a short-term profit-taking scenario rather than a long-term accumulation phase.

For a meaningful rebound, significant accumulation is crucial to trigger a supply shock while absorbing excessive market liquidity. Solana’s volume metrics will be a key indicator to watch for any signs of a potential trend reversal in the near future.