The Solana blockchain ecosystem is confronting significant headwinds as its native cryptocurrency experiences sustained selling pressure. SOL recently plunged to its lowest valuation in five months, breaching a crucial technical support level that market participants had been closely monitoring. With blockchain activity declining to annual lows, analysts are debating whether the $130 price floor will stabilize the asset or if further declines toward $100 are imminent.
Institutional Interest Provides Contrasting Signal
Despite the negative price action, institutional products tracking Solana have demonstrated remarkable resilience. Thursday marked the thirteenth consecutive day of inflows into Solana-focused exchange-traded funds, suggesting sustained institutional appetite. These investment vehicles have now accumulated combined assets exceeding $533 million, with net inflows reaching $370 million since inception. The Bitwise Solana ETF (BSOL) has been particularly instrumental in driving this trend.
However, the pace of these institutional inflows appears to be moderating, potentially contributing to the current price weakness. While this institutional support provides a counterbalance to retail selling pressure, questions remain about whether it will be sufficient to halt the downward momentum.
Network Activity Shows Dramatic Contraction
On-chain metrics reveal concerning fundamentals for the Solana network. The count of active addresses has collapsed to approximately 3.3 million, representing a twelve-month low and a staggering 63% decline from the over 9 million active users recorded at the start of 2024.
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This dramatic contraction primarily stems from diminished interest in meme coin trading, which had driven unprecedented engagement on the platform throughout 2024. Corresponding with this activity decline, SOL has surrendered 26% of its market value over the past thirty trading days. One relative bright spot exists in the decentralized finance sector, where the Total Value Locked across Solana-based protocols remains above $10 billion, indicating that substantial capital continues to support the ecosystem’s core infrastructure.
Technical Positioning Suggests Pivotal Moment
From a technical analysis perspective, SOL is navigating critical price territory. The cryptocurrency has been trading in the $140-$143 range after falling below the psychologically significant $150 threshold, a development that has reinforced bearish sentiment among traders.
Market experts are now focusing on the historical support zone between $130 and $135, where buying interest has previously emerged during downturns. A failure to maintain this level could trigger accelerated selling, with technical charts suggesting potential downside targets ranging from $100 to $126. Resistance has solidified in the $155-$160 band, where recent recovery attempts have encountered selling pressure. The market appears to be undergoing a compression phase, with a decisive breakout in either direction likely to establish SOL’s trajectory for the remainder of November.
As Bitcoin faces similar pressure and the broader digital asset market contends with headwinds, some observers point to upcoming decentralized exchanges and protocols as potential catalysts that could reinvigorate the Solana network. The coming weeks will prove critical in determining whether institutional backing and fundamental strengths can counteract the current technical breakdown.
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