The price of Solana has been under significant downward pressure as February begins, with the token shedding nearly 30% over the last month. It is currently trading within a declining channel that shows signs of weakening momentum. The price steadily approaches the lower boundary of this channel, reflecting diminishing long-term investor confidence.
Simultaneously, there has been a dramatic drop in net staking activity, a slowdown in buying on exchanges, and an uptick in short-term traders accumulating positions. These combined factors indicate that more $SOL tokens are becoming available for potential selling just as technical support levels weaken.
Staking Activity Plummets Amid Threat to Descending Channel
The recent downturn in Solana’s value is compounded by a steep decline in staking engagement. The metric tracking weekly net changes in $SOL locked within native staking accounts reveals this trend clearly: positive numbers denote new stakes being added while negative figures show tokens being unstaked.
Back at the end of November, investor conviction was strong—during the week ending November 24th alone, over 6.34 million $SOL were staked net-net indicating robust accumulation.
This bullish trend has reversed sharply since then. By mid-January, weekly flows turned negative with approximately –449,819 $SOL unstaked during the week ending January 19th. Two weeks later on February 2nd, net unstaking surged to –1,155,788 $SOL—a roughly 150% increase—signaling accelerated withdrawal from staking pools.
This growing release of previously locked tokens into liquid circulation means more coins can be moved onto exchanges and sold quickly—heightening downside risk precisely when prices hover near critical support zones within their descending channel structure prone to breaking down by about 30%.
Exchange Demand Declines While Speculative Positions Rise
The reduction in staking activity is mirrored by shifts seen on exchange platforms where token inflows and outflows are tracked over rolling periods. Exchange Net Position Change measures how much $SOL moves onto or off exchanges across thirty days: negative values imply accumulation (outflows), whereas rising values suggest slowing demand or increased supply availability.
On February 1st this figure stood near –2.25 million $SOL reflecting strong buying interest but fell sharply two days later to around –1.66 million—a nearly 26% decrease signaling reduced purchasing momentum amid rising liquid supply due to unstaking acceleration.
Meanwhile speculative trading activity is picking up pace according to HODL Waves data which segments holders based on how long they keep their coins:
- The cohort holding between one day and one week expanded its share from approximately 3.51% to over 5%, indicating short-term traders entering amidst volatility aiming for quick profits rather than long-term holds;
- A similar pattern occurred late January when this group’s share peaked at around five percent before dropping alongside falling prices suggesting rapid entry-exit cycles typical for speculative behavior;
Critical Price Levels Point Toward Possible $65 Downside
The technical chart continues reflecting these bearish signals consistent with deteriorating fundamentals shown through on-chain data analysis:
- $$SOL remains confined inside a descending channel guiding prices lower since November;
- Losing key support at roughly $98 pushed it closer toward $96 near its lower boundary;
If this floor fails decisively then Fibonacci-based projections place next major targets close to $67—with deeper declines potentially reaching around $65 corresponding with full measured breakdowns expected from such channels (~30%).
- Bullish recovery faces resistance hurdles first at $98 followed by stronger barriers near $117 which capped multiple rallies earlier this year;
Summary:
Deteriorating fundamentals including collapsing staking participation combined with waning exchange demand and surging speculative positioning have flooded markets with additional circulating supply just as technical supports weaken considerably. If sustained accumulation does not return soon,
$SOL</span> will likely face further downside pressure targeting levels close to $65.“, , $SOL</span>) Unstaking Surges&amp;amp;amp;amp;amp;% — Rising Liquid Supply Opens Price Path To&;dollar;;dollar;. appeared first on BeInCrypto.",
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