TLDR

  • Solana (SOL) dipped below $97, hitting its lowest price since 2024 with a 16% drop over seven days
  • The network processed a record 148 million transactions in a single day on January 30, showcasing robust on-chain activity
  • Tokenized stocks on Solana reached a $230 million market capitalization, signaling ongoing institutional interest despite price challenges
  • U.S. Solana ETF inflows remain weak at under $9 million daily, with the derivatives market reflecting bearish sentiment
  • Technical indicators suggest potential further decline to $85, though long-term projections estimate SOL could reach $2,000 by 2030

Solana (SOL) is currently trading near $91 after dropping to $89, marking its lowest price point since 2024. The cryptocurrency has fallen more than 16% in the past week amid a broader market downturn.

Solana (SOL) Price

The price decline coincides with Bitcoin dropping below $73,000 and Ethereum falling under $2,100. SOL has struggled to hold support above $100, breaching multiple support zones in recent days.

Despite downward price pressure, Solana’s network activity tells a contrasting story. The blockchain processed nearly 148 million transactions on January 30, excluding governance votes—one of the highest daily transaction counts in the network’s history.

The disconnect between price performance and network usage highlights current market dynamics. Users continue to interact with the Solana blockchain even as traders sell off their holdings.

Institutional interest in Solana persists through tokenized products. The market cap of tokenized stocks on the Solana blockchain reached $230 million. WisdomTree recently expanded its tokenized investment offerings to the Solana network.

GustoHQ, a payroll platform, now uses USDC on Solana for real-time settlement of foreign fund transfers. These developments demonstrate ongoing business adoption of the network.

ETF Flows Show Weak Demand

U.S. Solana ETF inflows have remained under $9 million daily over the past three weeks. On February 2, the ETF recorded an inflow of $1.24 million, down from $5.58 million the previous day. Some days have seen outflows instead of inflows.

The derivatives market reflects current bearish sentiment. Solana’s Open Interest dropped 1.24% in 24 hours to $6.37 billion. Long liquidations outpaced short liquidations by more than five times.

The OI-weighted funding rate for Solana sits at negative 0.0238, indicating traders expect further price declines. Total market liquidations reached $735 million, with long positions accounting for $529 million.

Technical Analysis Points to Further Downside

SOL currently trades below its 50-day, 100-day, and 200-day exponential moving averages. The Relative Strength Index sits at 28, placing it in oversold territory, suggesting additional selling pressure may continue.

The Moving Average Convergence Divergence indicator shows negative momentum. If SOL breaks below $95, analysts see $85 as the next support level. A breakdown below $85 could push the price toward $82.

Immediate resistance sits at $93, with the next level at $97. A bearish trend line on the hourly chart shows resistance at $98. For bulls to regain control, SOL would need to reclaim $100 and break above $102.

A successful move above $119 could open the door to $150 in the medium term. However, the current technical setup favors continued downside risk in the short term.

Standard Chartered maintains a long-term forecast of $2,000 for Solana by 2030. The bank views Solana as evolving from a speculative asset into a platform for microtransactions and AI applications.