Despite President Donald Trump’s decision regarding a “Strategic Bitcoin 
$77,690 Reserve,” recent developments in financial markets have intensified tensions, leading to a sharp decline in the cryptocurrency market. The altcoin Solana 
$86 (SOL) has suffered significantly, dropping to $114. Despite attempts to recover, decreasing on-chain data heightens concerns for this altcoin, as its price hits a three-year low and network revenue falls by 93%, alarming investors. Experts warn that SOL could test levels below $100 in the short term.
Solana’s Realized Price Hits a Three-Year Low
Solana’s realized price (average cost basis) has fallen from $134 to $114, marking its lowest level since May 2022. This indicates that the average investor in SOL is at a loss. Historical data suggests that assets falling below their realized price are likely to face significant selling pressure.
On-chain activity for altcoins is also worrying, with Solana’s network revenue dropping to its lowest level ($4 million) since September 2024, while decentralized applications (dApps) have seen an 86% decrease in revenues. The total value locked (TVL) in the network has dwindled from $12 billion to $6.38 billion.
What Direction is Expected for SOL Price?
SOL is attempting to stabilize around the $127 mark, but technical indicators signal weakness. With prices below EMA trend lines and an RSI of 44, the risk of decline remains. Analysts identify $110 as a crucial support level, suggesting a potential test of $100 if a permanent loss occurs below this threshold.
Conversely, if the $139 resistance is breached, bullish signals could strengthen expectations. However, the overall negative market sentiment and macroeconomic uncertainties complicate Solana’s recovery. Investors are closely monitoring the Fed’s interest rate policies and developments in global trade wars.
