Solana DEX Volume Drops Over 20% as RSI Confirms Price Weakness

Solana’s price has dipped below key resistance levels amid declining decentralized exchange (DEX) volume and continued selling by long-term holders. Trading volume has dropped over 20% in the last week to $21.3 billion, while long-term holder supply has fallen to 7.28% from 9.77% in the prior week. These trends have made it difficult for the token to maintain rallies above $89, a critical price threshold.

Recent movements in Solana ETFs suggest shifting institutional preferences. U.S. Solana ETFs recorded $2.70 million in inflows on February 12, contrasting with $300 million in outflows from Bitcoin and Ethereum ETFs on the same day. The trend reflects a strategic shift in capital rather than a broad exit from crypto, with Solana ETFs now managing $656.29 million in total assets.

Institutional investors are also gaining new tools to manage Solana holdings. A partnership among Anchorage Digital, Kamino Finance, and Solana Company has enabled borrowing against staked SOL without transferring custody. This structure allows investors to retain control of their assets while generating staking yields and accessing liquidity through decentralized lending platforms.

Why Did This Happen?

Solana’s price is under pressure from bearish technical indicators and a lack of sustained buying momentum. The relative strength index (RSI) has moved into oversold territory, indicating exhaustion among buyers but not a confirmed reversal. Additionally, short-term traders are defending the $75 support level, which, if broken, could trigger further selling and drive the price lower toward $66 or $59.

The token has failed to reclaim key moving averages, such as the 50-day EMA near $119, and remains in a descending channel. This structure reflects bearish control and increases the likelihood of continued downward movement unless a strong reversal occurs.

How Did Markets React?

Market reactions have been mixed. While price action remains weak, with a 45% drop over the past month, investor sentiment is split between bearish positioning and strategic accumulation. Over 1.077 million SOL has been withdrawn from centralized exchanges in 72 hours, suggesting growing confidence in the asset despite short-term volatility.

Solana Company, the second-largest publicly traded holder of SOL, has seen a 17% jump in share price following the announcement of the new borrowing structure. This reflects optimism about the firm’s ability to optimize treasury management and unlock value through on-chain tools. The firm previously saw a 90% decline in share value following its pivot to a Solana treasury strategy in September.

What Are Analysts Watching Next?

Analysts are closely watching key support levels and technical indicators for signs of a reversal. The $84 support level has become a focal point, with a potential breakdown risking a further decline to $79 or $59. If Solana can reclaim $89 and break above $91, it could signal renewed bullish momentum.

Upcoming protocol upgrades, such as the Alpenglow consensus upgrade, are also under scrutiny. This upgrade aims to reduce transaction finality from 12 seconds to 150 milliseconds, potentially enhancing institutional adoption. Combined with the Firedancer validator client improvements, these upgrades could strengthen Solana’s competitive position in the Layer 1 blockchain space.

Regulatory developments will also play a crucial role. Multiple Solana ETF applications are pending SEC review, and approval could unlock significant institutional capital. However, near-term volatility remains elevated due to distressed selling by corporate holders seeking to meet debt obligations. Standard Chartered remains bullish on Solana’s long-term potential, projecting a price of $2,000 by 2030 based on the network’s scalability, low fees, and developer ecosystem.

Investors are advised to monitor key technical levels, ETF flows, and institutional activity as these factors will shape Solana’s short- and medium-term trajectory. A confirmed reversal above $91 could signal a shift in sentiment, but bearish pressure remains strong until that threshold is breached.