On Thursday, Solana’s (SOL) price dipped to $245, marking a 9% decline from its peak of $264 reached last week. Despite the pullback, on-chain data reveals that major Solana stakeholders remain in profit following Bitcoin’s historic surge past $100,000.

Bitcoin Breaks $100,000, Driving Altcoin Market Rally

Bitcoin shattered the $100,000 milestone for the first time, propelled by President-elect Donald Trump’s announcement of Paul Atkins—a crypto advocate—as the nominee for SEC Chair, replacing Gary Gensler. This announcement fueled optimism across the cryptocurrency market, with leading altcoins like Ethereum (ETH), Ripple (XRP), and Solana (SOL) benefiting from the bullish momentum.

In response, Solana briefly rallied by 4.2% to $245 but faced resistance, falling short of surpassing its previous highs. While Bitcoin’s performance improved by 8% in 24 hours, Solana’s muted gains have sparked concerns about bearish trends in the altcoin market.

Massive $500 Million SOL Unstaking Event Post-ATH

Last week, Solana reached an all-time high of $264, surpassing its four-year record of $259. However, following this surge, a significant $500 million worth of SOL was unstaked from smart contracts.

On-chain metrics indicate a decline in the total value of SOL staked, falling from 389.4 million SOL on November 28 to 387.2 million SOL on Thursday—a withdrawal of over 2.2 million SOL ($528 million). These large outflows are often a bearish indicator, as they increase market supply and reduce staking participation, which is crucial for network stability in proof-of-stake systems.

Solana Price Analysis 2025

Market Sentiment Turns Bearish Amid Profit-Taking

The profit-taking activity, coupled with a broader bearish sentiment, has dampened Solana’s price momentum. The cryptocurrency has struggled to maintain upward movement as market participants remain cautious.

Solana Faces Resistance at $250 Amid Market Headwinds Before 2025 Rally

Technical indicators suggest that Solana will face challenges in breaking through the critical resistance level of $250. The Chande Kroll Stop indicator highlights this zone as a selling trigger, and without increased buying volume, SOL risks further price retracement.

Adding to the bearish outlook, the BullBear Power (BBP) indicator remains in negative territory, reflecting declining buying interest. If staking outflows persist and broader market trends remain unfavorable, Solana’s price may struggle to retest its previous all-time high of $265.

The BullBear Power (BBP) indicator reinforces the bearish sentiment, remaining in negative territory. Analysts caution that if SOL fails to secure a daily close within the $245-$250 range, it could test the $230 support level. A breach below $230 may exacerbate selling pressure, potentially driving the price down to the $224 support zone, which offered stability last week.

Conversely, a strong close above $250 could pave the way for a breakout, pushing SOL to new highs beyond $270. However, the current market environment, marked by significant staking outflows totaling over 2.2 million SOL, dampens optimism for immediate upward momentum.

Ethereum and Solana: Distinct Blockchain Niches

While Solana and Ethereum (ETH) are often seen as competitors, both are thriving in separate market segments. Ethereum continues to dominate decentralized finance (DeFi), with platforms like Uniswap and Lido leading the charge. Ethereum’s blockchain activity rose by 47% last month, with Uniswap reporting a 62% surge in trading volume and CoW Swap experiencing a 71% increase.

Meanwhile, Solana has carved out a niche as a hub for memecoin trading and high-performing decentralized applications (DApps). Notable Solana-based DApps, including Raydium, Jito, and Pump.fun, rank among the highest-earning platforms. However, the speculative nature of memecoin trading, driven by tokens like BONK, POPCAT, and SPX6900, raises concerns about volatility and network stability.

Solana Price Prediction

Solana Futures Market Shows Optimism

Despite recent price declines, Solana’s futures market data reveals strong investor confidence. Futures contracts are trading at a 23% annual premium, their highest since July, signaling bullish sentiment. However, analysts warn that excessive optimism could lead to heightened liquidation risks in the event of a market correction.

At a market capitalization of $113.7 billion, Solana trails Ethereum’s $429.4 billion valuation, leaving substantial room for growth. Solana’s rapid adoption for memecoin trading and innovative DApps positions it for future expansion, but investors should remain cautious about speculative activity and market volatility.

Key Takeaways for Solana Investors

  • Critical Resistance: SOL must break the $250 barrier to sustain upward momentum; failure could trigger further declines to $230 or $224.
  • Market Trends: Staking outflows and profit-taking are pressuring Solana’s price, highlighting the need for increased buying volume.
  • Blockchain Niches: Solana and Ethereum are thriving independently, with Solana excelling in memecoin trading and Ethereum leading in DeFi.
  • Futures Premiums: Strong futures market premiums indicate optimism but also pose risks of volatility.

Conclusion

While Bitcoin’s $100,000 milestone has propelled the broader cryptocurrency market, Solana’s price performance indicates mixed sentiment. Profit-taking trends, significant staking withdrawals, and resistance at $250 present key challenges for the token’s short-term trajectory. Investors should monitor on-chain metrics and technical indicators closely to gauge Solana’s next move.