Solana (SOL) price made one of the most impressive comebacks of the crypto market in the last 2 years. Solana blockchain has had a bad rep due to multiple instances of downtime.
The network has since turned things around and even became one of the top most widely adopted and utilized blockchains of 2024.
SOL rallied by over 1,500% from October 2023 lows to its January 2025 peak. While this made it one of the most attractive coins, will the market extend the same courtesy in 2025?
Will the Solana network continue to dominate in terms of network activity? The 2024 hype around the Solana blockchain was largely driven by meme coin hype. It remains unclear whether the meme coin narrative will continue to play out this year.
Solana (SOL) price at critical juncture
If Solana will still maintain its DeFi dominance, then this could potentially pave the way for a strong recovery. SOL price recently dropped as low as $112 earlier this week. The last time it was that low was during the August 2024 crash which was induced by the Japanese carry trade unwinding.
SOL exchanged hands at $126.40 at press time, confirming a slight recovery. It was also notably trading at a key level which previously demonstrated support.
Aside from consolidating at a key support level, SOL price also demonstrated other bullish signals. For example, it formed a bullish price-RSI divergence with a lower low price and a higher low for the RSI.
In addition, the Solana price MFI confirmed that healthy accumulation has been building up since the last week of February.
Assessing SOL demand build-up
Demand from the whale cohort previously cooled off as the bears dominated the market. However, recent analysis reveals that whale activity is making a comeback.
According to Coinglass, roughly $26.02 million worth of whale trades were observed in the perps segment. Whale trades worth $4.3 million were recorded in the spot segment on OKX, Coinbase and Binance.
This whale activity may not be much in relative terms and largely because the market sentiment is still weak. Nevertheless, it has contributed especially in shielding Solana price from more downside.
Spot outflows also demonstrated a decline after previously maintaining dominance since the start of January. However, a spot flows did not demonstrate a sharp shift in favor of inflows, confirming that the market was still uncertainty about SOL’s bullish prospects.
External political economic disruptions have been blamed for the bearish investor sentiment and may be the reason for subdued demand.
Nonetheless, market sentiment appears to be improving, which means Solana bulls have a decent chance at securing dominance and pushing for a sizable recovery.
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