Why Solana is Crashing Below $140: What’s Next-Will it Recover?

Table Of Contents

Why is Solana Falling? Key Reasons Behind the Crash
Will Solana Recover? Key Factors That Could Drive a Rebound
Solana Price Prediction: Can SOL Reach $10,000?
Is It the Right Time to Buy Solana?

Why Solana is Dropping and Will $SOL Rebound? Solana (SOL) is experiencing a sharp downturn, currently trading at $138.45 after a 12.6% drop in the past 24 hours. Over the last week, SOL has plummeted by 16.27%, and in the past month, it has lost over 45% of its value. The ongoing sell-off has left many investors questioning: Why is Solana crashing, and can it recover?

Why is Solana Falling? Key Reasons Behind the Crash

Several major factors are contributing to Solana’s price decline:

1. Whale Sell-Offs Increase Selling Pressure

Large holders have been offloading their SOL holdings, triggering panic in the market. Analyst Ali Martinez reported that between January 25 and February 23, approximately 135 whale accounts, each holding over 10,000 SOL, either sold or redistributed their assets. This decline in whale participation has contributed to SOL’s price dropping from $257.01 to $168.07.

2. Bybit and Infini Hacks Shake Investor Confidence

Crypto security concerns have escalated after two major hacks:

Bybit Hack: Hackers stole $1.5 billion in virtual assets, leading to a $4 billion bank run on the platform.
Infini Exploit: A former developer drained $49.5 million from the project, laundering funds through Tornado Cash.

Solana was indirectly linked to these events, as hackers reportedly used Solana-based meme coins for laundering activities, further damaging market sentiment.

3. Declining Solana Network Activity

User engagement on the Solana network has dropped significantly. Active wallet addresses have declined from 18.5 million in October 2024 to just 7.3 million by February 2025—a staggering 60% drop. This decline in network usage has fueled concerns over Solana’s long-term adoption and utility.

4. Wintermute Withdraws $40M SOL Ahead of Token Unlock

Wintermute, a major market-maker, withdrew $40 million worth of SOL from Binance. This move came just before a $2-billion token unlock scheduled for March 1, raising fears of further sell-offs and increased supply in the market.

Will Solana Recover? Key Factors That Could Drive a Rebound

Despite the current bearish trend, several positive developments could^q help Solana recover:

1. Circle Mints 250 Million USDC on Solana

Stablecoin demand on Solana is rising, with Circle recently minting 250 million USDC on the network. In 2025 alone, over 8 billion USDC has been issued on Solana, signaling strong DeFi activity, which could bolster SOL’s price.

2. Institutional Interest: Franklin Templeton’s Solana ETF Filing

Investment giant Franklin Templeton has filed for a Solana ETF, which, if approved, could attract significant institutional capital into the ecosystem.

3. Expanding Adoption and Competitive Edge

Solana continues to rival Ethereum due to its low transaction fees and fast processing speeds. Popular Solana-based meme coins like OFFICIAL TRUMP and Bonk are also fueling on-chain activity, helping to maintain its relevance in the market.

Solana Price Prediction: Can SOL Reach $10,000?

Short-term projections suggest that if SOL breaks above $160, a rally towards $184-$205 is possible. However, if it fails to hold the $120 support level, further declines could see it testing the psychological $100 mark.

Looking further ahead, Solana price predictions for 2025 depend on network adoption, regulatory developments, and institutional support. While some speculate that SOL could reach $10,000, such a price target remains highly speculative and dependent on market conditions.

Is It the Right Time to Buy Solana?

With Solana currently oversold, a short-term relief rally could be on the horizon. However, given the uncertainties, investors should approach with caution, monitoring key events like the upcoming token unlock and potential ETF approvals.

While Solana’s fundamentals remain strong, its short-term trajectory remains uncertain. As the crypto market continues to evolve, keeping a close eye on network activity, institutional interest, and macroeconomic factors will be crucial for predicting Solana’s next move.