Solana's Volume Plummets: Bulls Battle Bears Amid Crypto Rout

Solana's transfer volume has plummeted to $14.57 million, a stark contrast to the $1.99 billion recorded in November 2024. This significant decline in network activity has raised concerns about the current state of the Solana ecosystem. The broader crypto market remains under pressure, with altcoins struggling to regain bullish momentum. Analysts warn that further declines could be on the horizon if SOL fails to hold key levels.

Solana is currently trading at its lowest level since September 2024, following yesterday's market-wide correction. Extreme fear continues to grip the market as SOL fails to find strong support, with bears maintaining control since the cryptocurrency hit its all-time high back in January. Since then, Solana has retraced over 55%, leaving investors uncertain about its short-term prospects.

The coming days will be crucial for SOL. If bulls fail to defend key support levels, Solana could see further downside. However, a strong recovery in volume and price action could indicate renewed interest and potential for a reversal. The price action remains weak as Solana trades below key demand levels that once sustained its long-term bullish structure. Bulls have lost momentum, failing to establish a strong recovery, while bears continue to drag the entire market down.

If SOL can hold above key demand levels, a recovery phase could begin. However, continued weakness in volume and price action could lead to further declines, making it essential for bulls to reclaim momentum soon. If Solana fails to maintain its current support, the next critical level to watch is $130, where buyers may attempt to step in again. However, a sustained breakdown below this mark would increase the risk of further declines into lower demand zones.