NewsBTC
2 hours ago
0 0

Solana Price Down 58.6% From January Peak Amid Distribution

Solana's Price Pattern and Influences

  • In January, Solana reached an all-time high of $296. However, it has since entered a persistent decline.
  • The decline is linked to a risk-off sentiment in the crypto market and early distribution by large holders before the January peak.

Distribution Before January Peak

  • Solana was already trending downward from September, with a lower high of around $247 compared to its January peak.
  • Analysis shows that significant selling started months before the January high, indicating large holders were exiting early.
  • Despite attempts, Solana failed to surpass its previous all-time highs, unlike other major cryptocurrencies like Bitcoin, Ethereum, and others.

Solana

  • Retail wallets have remained active, while mid-sized and institutional wallets have reduced activity significantly since January.

Dependency on Memecoin Activity

  • Solana's demand has been partly driven by the memecoin sector, with coins like Cat in a Dogs World (MEW) and Peanut the Squirrel (PNUT) contributing to price hikes.
  • The Official Trump ($TRUMP) token launch in January 2025 also boosted Solana’s all-time high.
  • Recently, these memecoins have seen declining interest and trading intensity, affecting Solana's price stability.

Currently, Solana is trading at $121.50, down 58.6% from its January peak.

Solana