Solana’s Darkest Hour 🌑

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“Solana’s Darkest Hour 🌑”

Solana’s Darkest Hour 🌑

Ah, the pitiful state of Solana (SOL) – its market sentiment has sunk to the depths of despair, a monthly low, if you will. The on-chain intelligence platform Santiment has gathered the data, and it’s a dismal sight to behold. 📉

Investors, those lovable optimists, are now bearish on the sixth-largest cryptocurrency by market cap. But, as is often the case, this may be the calm before the storm – a signal that a price jump is just around the corner. 🤔

Solana Sentiment Hits Rock Bottom 🤦‍♂️

The last time SOL investors were this bearish was around January 20, when the asset’s value fell to $232. Since then, the coin has taken a nosedive of over 30% to $161. And, if we’re being completely honest, it’s been a wild ride – from its January 19 high of $293, SOL has plummeted more than 45%. 🎠

The poor souls who invested in Solana are frustrated, to say the least. They’re drawing comparisons to the infamous FTX collapse in November 2022. The wounds are still fresh, and the pain is palpable. 💔

Market analysts, those wise sages, attribute SOL’s price dump to the current state of the meme coin sector. Solana, the leading network for creating and minting meme coins, has been at the center of several pump-and-dump schemes. Insiders have pulled over $200 million in liquidity from meme coins launched on the Solana network this year alone. 🤑

As SOL’s price continues to plummet, activities on the network are also declining. CryptoPotato reported earlier this week that Solana’s decentralized exchange (DEX) trading volume fell to $2.61 billion on February 16, a level not seen since mid-December 2024. It’s a downward spiral, folks! 🌀

A Glimmer of Hope? 🌟

Although SOL had risen 2% daily at the time of writing to $169, the Solana community is still wary about the asset’s price trajectory in the coming days. Market pressures don’t seem to be easing up, and about 11.2 million SOL, worth over $1.89 billion at current prices, is set to be unlocked and released into the market on March 1. 📆

But, as Santiment so astutely points out, the market often moves in the opposite direction of the crowd’s expectations. So, perhaps, just perhaps, SOL could experience a big bounce in the coming weeks. 🤞

“While discussion rates are extremely high and crowd sentiment is bearish, this is historically a signal that there is a high bounce probability,” the market intelligence firm stated.

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2025-02-19 15:41