- SOL’s transfer volume exceeded $3B, a shift in network activity despite its price decline from $200+ to $126.54.
- Liquidation spikes indicate market uncertainty, with long liquidations dominating as bullish traders face increased downside risks.
- SOL’s MACD shows slight bullish momentum, but resistance at $130-$135 must break for a potential move toward $140-$150.
Solana’s (SOL) network activity has increased, with its transfer volume surpassing $3 billion for the first time since September 2024, according to analyst Ali. This surge indicates a shift in market trend.
Transfer Volume and Price Action
SOL’s transfer volume had a notable peak between late November and early December, exceeding 450 billion. During this period, SOL’s price was above $200, showing strong demand and high transaction activity.
For the first time since September 2024, #Solana $SOL transfer volume has hit $3 billion! pic.twitter.com/Da9Ifu38lf
— Ali (@ali_charts) March 13, 2025
However, a sharp decline followed, suggesting reduced network activity and liquidity. By mid-December, SOL’s price showed volatility, peaking near $208 in late January, but transfer volumes remained comparatively low.
This trend indicates a market where price movements do not necessarily correlate with on-chain activity. Since mid-February, SOL’s price has followed a downward path. At the same time, transfer volume has remained muted, pointing to lower investor activity and decreased trading activity.
A newly created wallet withdrew 201,755 $SOL($25M) from #Binance 2 hours ago.https://t.co/HnOnfhe1yA pic.twitter.com/Vrq7jTgk8o
— Lookonchain (@lookonchain) March 13, 2025
The decline suggests that SOL faces increased selling pressure and reduced on-chain transactions. Notably, Lookonchain reported that a newly created wallet withdrew 201,755 SOL ($25M) from Binance, indicating possible accumulation in the price downturn.
Liquidation Trends Indicate Increased Volatility
The liquidation trends in SOL’s market show substantial volatility, with both long and short positions having frequent liquidations. Green bars represent long liquidations, while red bars indicate short liquidations.
Large spikes in liquidation volume often coincide with sharp price movements, leading to increased trading uncertainty. Between mid-November and early January, SOL’s price traded above $250, leading to rising long liquidations as leveraged traders faced liquidation risks.
Massive long liquidation event occurred in late January when SOL’s price sharply dropped from over $250 to around $200. This period indicated intense market corrections, with traders facing unexpected losses.
From February to March, liquidation activity spiked again, indicating an uncertain market. A notable short squeeze in late February pushed SOL above $200 temporarily before it resumed its decline.
More recently, long liquidations have dominated, indicating that bullish traders are struggling as SOL’s price weakens. As a result, SOL has faced increased downside risks, with the $100-$120 range acting as potential support.
Key Levels and Indicators
At the time of publication, SOL was trading at $126.54, a 1.82% increase in the past 24 hours. SOL had a high of $128.00 and a low of $123.65.
Since mid-February, SOL has been on a downward trend, falling from over $200 to below $140. The support zone at $120 has provided temporary price stability, while near-term resistance levels are between $130 and $135.
Trading volume is low to moderate, with 92.43K SOL recorded. Volume spikes occurred ON March 3, suggesting previous heavy buy activity. The MACD shows a slight bullish trend, with the MACD line at -2.206 crossing above the signal line at -3.081.
However, the overall MACD value is negative, indicating that the trend is not fully bullish. The On-Balance Volume (OBV) is at 4.46M, a slight recovery after an earlier decline. A rising OBV indicates accumulation, suggesting some buying pressure.
If bullish momentum continues, SOL could challenge resistance at $130-$135. A breakout above $135 could drive momentum toward $140-$150. However, failure to hold above $120 could push SOL toward $110-$100 support levels, with continued long liquidations potentially intensifying the bearish pressure.
