Solana has experienced intense selling pressure, now trading at its lowest levels since November 2024 and erasing all the gains from the post-election rally. Once a leader in the altcoin market, Solana is now facing serious risks as the meme coin euphoria that fueled its rise has turned into a bloodbath, raising concerns about its long-term sustainability.
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The speculative frenzy surrounding meme coins initially drove massive transaction volumes and liquidity to the Solana ecosystem. However, as the hype fades and major sell-offs continue, the impact is now weighing heavily on SOL’s price action. Analysts suggest that the rapid cycle of speculation and liquidation has left Solana vulnerable to further downside.
Crypto analyst Jelle shared an analysis on X, revealing that SOL took out the recent lows but managed to close above the previous lows, signaling a potential relief move. Jelle emphasized that this could be a crucial moment for SOL, as reclaiming key levels could ignite a strong recovery. However, the coming days will be critical, as the market awaits confirmation of a bounce or further downside. Investors are closely watching Solana’s price action, as it teeters on the edge of a major move.
Solana Testing Critical Demand Levels
Solana has faced massive selling pressure since reaching its all-time high in late January, with its price now struggling to recover amid a broader downturn in the altcoin market. Negative sentiment continues to dominate as the meme coin frenzy that once fueled Solana’s growth has turned into a liability, dragging down liquidity and investor confidence.
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The rapid rise and fall of speculative meme coins on the Solana network have created an unstable trading environment, with traders hesitant to reinvest in the ecosystem. This shift has led to a decline in decentralized exchange (DEX) volumes, further exacerbating Solana’s struggle to maintain bullish momentum. The network’s fundamentals remain strong, but price action suggests that investors are growing cautious.
Jelle’s analysis on X reveals that SOL took out the recent lows but managed to close above the previous lows. While this signals a potential relief move, it is far from confirming a full recovery. Jelle wants to see a strong bounce from here—ideally with SOL reclaiming $185 before the end of business on Friday.
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