Solana Extends Sharp Decline as Selling Pressure Breaks Key Support

Solana (SOL) saw a sharp downturn in a highly volatile Wednesday session, slipping more than 5% as it broke through critical support levels identified by CoinDesk Research’s technical analysis model. The token fell to $145.43, wiping out gains from the previous week and signaling a potential shift in market sentiment. Trading volume surged more than 13% above weekly averages, highlighting heavy institutional selling as the dominant force throughout the session.

The sell-off intensified late in the day, triggering a cascade of stop-loss orders as SOL tumbled from $153.03 to $145.31. Hourly candles repeatedly closed at new lows amid rising volume, confirming sustained bearish momentum. In the final hour of trading alone, the price plunged from $148.61 to $145.29 as sellers firmly controlled the market.

The decline came despite continued strength in spot Solana ETFs, which have now logged eleven consecutive days of positive inflows. Bitwise’s BSOL remains the frontrunner, pushing total ETF assets to around $369 million. However, the bullish ETF demand contrasts sharply with weakening network fundamentals. Daily active addresses dropped to a yearly low of 3.3 million, a steep fall from January’s 9 million peak. The fading memecoin trend that once fueled Solana’s surge appears to have cooled significantly, creating a divergence between institutional buying and on-chain activity.

Technical indicators reinforce the bearish setup. The decisive break below the $150 support level places the next significant floor in the $142–$144 range, with strong resistance now forming near $157.25. Volume during the breakdown spiked 157% above the daily average, a classic sign of institutional distribution. With lower highs forming since the $157.25 peak and downside momentum accelerating, analysts are watching for potential targets between $135 and $140 if selling pressure persists.

This combination of weakening network use, heavy volume declines, and bearish chart patterns suggests that Solana may face continued volatility in the sessions ahead.