Solana is currently facing significant challenges, marked by a sell-off from large holders and a decline in network activity. Recent data indicates a concerning trend that could impact the platform’s future viability and market sentiment.
Whale Sell-Off and Market Impact
Recent developments show that 135 addresses, each holding over 10,000 SOL, have either sold or redistributed their assets in the past month. This mass exit has coincided with a dramatic 60% decrease in active addresses on the Solana blockchain, dropping from an all-time high of 18.5 million in October to just 7.3 million today. Such drastic shifts in user engagement raise alarms about the platform’s sustainability.
The actions of these whales often reflect broader market trends. In Solana’s case, the outlook appears increasingly bleak, as the number of major wallets holding substantial SOL positions has decreased from 5,167 to 5,032 within a month. This exodus has directly impacted Solana’s price, which has fallen 15% in the last 24 hours, reaching a low of $135—a level not seen since November.
Decline in Network Activity
In addition to the whale sell-off, Solana is experiencing a significant decline in network activity. The number of active addresses has sharply dropped, indicating a concerning collapse in user engagement. The decline in new address creation has reached its lowest point since early September 2024, raising alarms about the platform’s adoption rates.
This downturn in active users has led to a substantial decrease in transaction fees, which have fallen from $33.36 million in early 2025 to just $2.79 million today. Such a decline suggests weakening demand for Solana-based applications and services, potentially exacerbating the downward pressure on the cryptocurrency’s price.
Impending Token Unlock and Market Speculation
Adding to the turmoil surrounding Solana is the impending unlock of 11.16 million SOL tokens scheduled for March 1. This event is expected to exert additional selling pressure on the market, as these tokens are valued at over $1.5 billion and are tied to FTX’s bankruptcy proceedings.
Concerns have been raised that firms such as Galaxy Digital, Pantera Capital, and Figure, which acquired these assets at a price of $64 per SOL, may opt to sell rather than hold. This potential selling could further contribute to the downward trend in Solana’s price, complicating the market dynamics.
Technical Indicators and Market Sentiment
Technical indicators are signaling a bearish momentum for Solana. The asset has broken below a key trendline that had previously supported its rally since early 2023. Currently trading at $137.62, Solana has experienced an 18% drop this week, indicating growing bearish momentum.
The Relative Strength Index (RSI) is nearing the oversold zone at 40.68, suggesting increased selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) has turned negative, confirming the prevailing bearish trend. Analysts are closely monitoring the situation, as the upcoming token unlock on March 1 could exacerbate the selling pressure.
Future Outlook and Support Levels
Historically, large unlocks have often triggered further price declines, and Solana’s next support level is identified at $133.48. Should it fail to hold this level, the cryptocurrency could be pushed toward the psychologically significant $100 mark. Overall market sentiment is further dampened by Bitcoin’s weakness, leading to sharper losses among altcoins.
For Solana to reverse its current downtrend, it would need to reclaim the $150–$160 range. This is a challenging feat given the current momentum favoring sellers. As the situation unfolds, stakeholders in the cryptocurrency space will be watching closely to see how Solana navigates this turbulent period.
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