Solana (SOL) Price Recovery

Solana (SOL) price made one of the most impressive comebacks in the crypto market over the last two years. The Solana blockchain initially had a bad reputation due to multiple instances of downtime.

However, the network has since turned things around and has become one of the most widely adopted and utilized blockchains of 2024.

Recent Performance

SOL rallied over 1,500% from its October 2023 lows to its January 2025 peak, making it one of the most attractive coins. Questions remain about whether the market will continue to favor Solana in 2025 and whether the network will maintain its dominance in network activity. The hype surrounding Solana in 2024 was largely tied to the popularity of meme coins, and it’s uncertain if this narrative will persist.

Solana at a Critical Juncture

In order for Solana to sustain its DeFi dominance, a strong recovery is essential. Recently, SOL’s price dipped to $112, a level last seen during the August 2024 crash that was caused by the unwinding of the Japanese carry trade. As of the latest update, SOL is trading at $126.40, indicating a slight recovery and trading at a key support level.

Alongside this consolidation, other bullish signals are emerging. A bullish price-RSI divergence has formed, with a lower low in price and a higher low for the RSI. Additionally, the price MFI indicates that healthy accumulation has been building since late February.

Assessing SOL Demand Build-Up

Demand from whales had cooled off as bearish sentiment dominated the market. However, recent analyses show that whale activity is making a comeback. According to Coinglass, approximately $26.02 million in whale trades were observed in the perps segment, while $4.3 million was recorded in the spot segment on various exchanges including OKX, Coinbase, and Binance.

Although this whale activity is modest in relative terms and market sentiment remains weak, it has played a crucial role in shielding Solana’s price from further downturns. Spot outflows have declined, and while there has not been a significant shift towards inflows, it confirms that uncertainty still looms around SOL’s bullish prospects.

External political and economic disruptions have been attributed to bearish investor sentiment, possibly causing subdued demand. Nevertheless, market sentiment appears to be improving, providing Solana bulls a strong chance to establish dominance and facilitate a sizable recovery.