Solana Price Recovery and Market Analysis

Solana has rebounded to $143 after a recent 28% crash, recovering 4% in the past day, but may face pressure due to continuous SOL deposits to Binance from FTX.

The decline followed a wave of profit-taking after initial optimism surrounding President Trump’s announcement of a U.S. Crypto Strategic Reserve on Mar. 2. Solana (SOL) surged to $179, before dropping to $130 as the market reacted to Trump’s confirmation of tariffs on Canada and Mexico effective on Mar. 4.

Despite the volatility, Solana’s decentralized exchange (DEX) sector remains robust. According to DeFiLlama data, Solana topped DEX volume for the fifth consecutive month, hitting $109 billion, 24% higher than Ethereum (ETH). While the memecoin trading market has cooled, platforms like Raydium (RAY), Meteora, and Orca continue to drive significant trading volumes.

Technical Analysis

On the technical front, the 9-day EMA acts as resistance, indicating bearish momentum. Support is at $136, while key resistance levels are at $150.05, $166.32, and $179.01. The relative strength index (RSI) at 39.65 suggests a brief recovery may be possible, as it is just above the oversold zone.

Although there has been a spike in trading activity recently, the overall trend appears downward. SOL may attempt to recover toward $166 if it breaks above the $150 level; however, further drops could occur if current support fails.

FTX’s bankruptcy estate seems poised to offload significant amounts of SOL, adding uncertainty to the market. On Mar. 4, an FTX-linked address unstaked 3.03 million SOL ($431.3 million), with 24,799 SOL ($3.38 million) transferred to Binance.

> Of the 3.03M $SOL ($431.3M) unstaked by FTX/Alameda today, 24,799 $SOL ($3.38M) has been deposited to #Binance.
> — Lookonchain (@lookonchain) March 4, 2025

On Mar. 5, another 58,964 SOL ($8.52 million) was deposited. With ongoing selling pressure from FTX and market volatility, traders are closely monitoring whether Solana’s recovery can be sustained.

Read more: VanEck research head warns Solana upgrades could slash validator earnings.