SOL Price Drops Below $140, Transfer Volume Plunges

Solana (SOL) has been slipping, seeing a big drop in price and activity. Over the last month, SOL is down almost 40%

Solana (SOL) has been sliding, showing a big drop in price and activity. Over the last month, SOL fell almost 40%, and the price is now around $140.54. This is a steep decline from its 2024 high of $264.

While the price crash was part of a broader market downturn, investors are keeping an eye on SOL to see if it can recover.

Whale Activity Sparks Sell-Off Fears

Blockchain analysis platform Lookonchain reported that a whale unfroze 1,366,028 SOL (worth about $198 million) and sent it to FalconX.

Later, FalconX sent 440,202 SOL ($62.6 million) to exchanges, Binance and Coinbase. This move might lead to a sell-off, adding to the negative mood in the market.

Also, a significant portion of the unfrozen SOL was acquired in March 2024 at an average price of $108.6, implying a potential selling pressure if the tokens are liquidated at the current market rate.

As such, investors and traders will be monitoring any further actions by FalconX closely for insights into the market trends and the fate of the unfrozen Solana tokens.

Transfer Volume Plummets, Confidence Wanes

Another big concern is the huge drop in Solana’s total transfer volume. Analyst Ali Martinez notes SOL’s transfer volume has plunged from $1.99 billion in November 2024 to just $14.57 million by February 23.

This massive drop in activity shows less investor confidence and weaker network use.

This is huge: #Solana $SOL transfer volume has plummetitzed from $1.99 billion in November to $14.57 million today! ?

This signals a significant decrease in investor activity and overall network usage.

The lower highs in the chart suggest that any recovery attempt may be met with selling pressure.

As the saying goes, “the trend is our friend.” The 20-day EMA for SOL is at $175.78, way above the current price. This difference shows strong downward momentum.

SOL needs to get back above this level for any real recovery. The daily chart from TradingView also confirms SOL’s bearish state.

RSI Signals Oversold, But Rebound Uncertain

The Relative Strength Index (RSI) is currently 26.07, as seen in the chart. This means SOL is oversold. Usually, an RSI below 30 suggests an asset is very undervalued and might see a short-term rise.

However, the strong downtrend could limit any recovery.

Further, SOL is trading near the lower Bollinger Band at $140.32. This indicates SOL is experiencing high volatility and is testing a key support zone at $140. If this level breaks, the price could fall further.