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- SOL bulls are staring at a golden opportunity to inject fresh capital into the network during this overall market downturn.
- Will they step up to seize this critical window of opportunity?
A month ago, Solana [SOL] soared to its all-time high as Bitcoin touched a historic $99K. The market’s “high-risk” sentiment sparked a rush into altcoins, with even low-cap tokens posting double-digit gains.
But surprisingly, SOL missed out on the action. Instead, it tumbled from $264 to $180 (as of writing), a staggering 31% loss in just 30 days. Now, the spotlight is on SOL as it faces mounting pressure to recover.
With the broader market in correction mode, can the new cycle pump fresh capital into SOL and keep its edge against fierce competition? The stakes couldn’t be higher.
Major challenges for SOL in its path to recovery
Solana’s daily chart tells a compelling story. Its sharp drop from the all-time high came after the market hit an overheated state – an environment where traders take profits and exit.
In these moments, bulls typically rush in to stop the bleeding, leading to either consolidation or a brief correction. But with consecutive long red candlesticks weighing heavily on the chart, it’s clear that bears have been calling the shots.
But the pressure on Solana doesn’t stop with the broader market. Internal metrics are also showing signs of weakness. Its DEX volume, which once soared to $18 billion, has now dropped to just $8 billion in the span of a month.
Even more concerning, Solana is the only altcoin in the top ranks with a double-digit decline, while its competitors continue to make gains.
But here’s the twist: many altcoins have already slipped below their cycle highs. Take Cardano (ADA), for example, which can’t seem to hold above the $1 mark, despite the initial hype. Others are fighting to turn resistance points into solid support.
It’s clear, the recent Bitcoin crash has rattled the altcoin market, and with volatility rising alongside economic uncertainty heading into 2025, the outlook remains murky.
Given all this, expecting Solana to make a swift, explosive recovery might seem like a stretch – at least in the near term. Or, could a rebound still be within reach?
Crypto market has a history of defying expectations
There’s no doubt, the $179–$180 range is a tempting entry point for Solana. As the market reshuffles, the weak hands may have already bailed, which could open the door for SOL to attract fresh capital.
Spot traders seem to be eyeing this move, as net outflows have surged in the past two days, approaching $200 million.
Source : Coinglass
This surge could help solidify SOL in this price range, but the road ahead is far from smooth.
For a true rebound, whales must step up. With 36.7% of Solana’s supply in wallets holding between 100K and 1 million SOL, these big players hold the power to break Solana out of its slump.
Read Solana (SOL) Price Prediction 2024-25
The logic is clear: as the market corrects, large players swooping in could trigger a sell-the-news effect, acting as a psychological catalyst to draw fresh capital. On top of that, FOMO could drive retail interest, giving SOL the momentum it needs to make a solid recovery.
And let’s not forget, the crypto market has a long history of defying expectations. If these factors align, Solana could emerge as the surprise ‘underdog’ in the next cycle, catching investors off guard.