Solana (SOL) has been facing significant selling pressure since reaching its all-time high in late January, with the price plummeting over 40%. Despite the bearish sentiment and broader market uncertainty, the Solana network continues to expand at an impressive pace, with key metrics revealing over 5 million new addresses being created daily.
The rapid growth in new addresses and daily activity demonstrates the network’s underlying strength and appeal to developers and users alike. This ongoing expansion could provide the foundation for a strong rebound, as fundamentals remain solid despite recent price action. As Solana navigates this challenging period, the next few weeks will be crucial in determining whether it can regain its bullish momentum.
Top analyst Ali Martinez shared insightful data on X, highlighting the strong growth of Solana’s user base and network activity, even during challenging market conditions. Martinez believes that this network expansion trend positions Solana for a potential price surge as fundamentals remain strong despite short-term price action. If the price manages to hold its critical support and maintain its growth trajectory, the coming months could bring renewed optimism and a recovery that could surprise the market.
Solana is currently trading at a critical support zone around $200, having dropped over 14% since Tuesday. The price has tested the last support level within its long-term bullish structure, leaving investors worried about sustained selling pressure. If SOL loses this level, a drop into lower demand zones around $190 is likely, with the possibility of further declines if selling pressure persists. However, a successful reclaim of the $200 mark and holding it as support could provide the foundation for a recovery, potentially pushing the price back above the $220 mark to signal strength.
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As the broader cryptocurrency market faces heightened volatility and bearish sentiment, Solana’s ability to hold this support is key to avoiding a deeper correction. The coming weeks will be crucial in determining whether SOL can stabilize and begin to recover or whether it will face further declines amid a broader bearish trend in the cryptocurrency market.
Tags: Solana, SOL, Solana network, Solana price, Solana activity