Trading volumes for leading cryptocurrencies have hit a two-year low, with notable declines since July 2024, according to analytics platform Santiment. This decline reflects weak demand and low market confidence, as traders exhibit less aggressive capital rotation. Each sell-off has intensified capital flight from the market, contributing to reduced trading activity.
Market Dynamics Affecting Solana
Macro pressures, including Bitcoin spot ETF outflows and a bearish trend persisting since October 2025, further explain the ongoing volume drops. Thin liquidity conditions suggest that any increase in demand might be muted, allowing rallies to be easily reversed. However, analysts are observing potential seller exhaustion, indicating that even a minor uptick in buying pressure could lead to significant price movements.
Technical Analysis of Solana's Potential
In this context, Solana (SOL) has recently flashed a bullish signal, as highlighted by crypto analyst Ali Martinez. Utilizing the SuperTrend tool over a three-day timeframe, Martinez noted that the ATR trailing stop has shifted positively, marking a buy signal. Key resistance levels to monitor now include $96 and $121.
Adding to the bullish sentiment, the Hodler Net Position Change metric from Glassnode shows a positive trend throughout 2026, indicating that long-term investors are actively increasing their holdings. Nonetheless, Solana's price remains ensnared in a bearish framework as it trades below significant swing lows of $95.26 and $67.50 established earlier this year.
Resistance levels are particularly critical, with $83.79 and $90.22 identified as key price points. The $116 level represents the realized price for Solana, highlighting the unrealized losses faced by most holders and potentially leading to sell-offs during price recoveries. Moreover, recent selling pressure was exacerbated by substantial token movements, including a $15.14 million transfer of SOL tokens by Alameda Research, which triggered over $10 million in long liquidations.
This material is for informational purposes only and does not constitute financial advice.
