Will Solana Reach $160? Here’s What’s Holding It Back

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Key Points

  • Ah, Solana. It has a growth spurt in activity but seems to be struggling to keep up with leverage demand and weak network fees. So, while it may be temporarily bullish, don’t hold your breath for a meteoric rise just yet. 🧐

  • For a short squeeze to $160, Solana would need to somehow convince the entire crypto market that it’s not a sinking ship. That means stronger derivatives support and a boatload of investor confidence… all while the macroeconomic sky is cloudy. 🌧️

Solana’s native token, SOL, couldn’t even muster the strength to reclaim $140 this Monday, despite showing some signs of life after its recent tumble. Why? Well, it’s caught in a negative feedback loop of negative funding rates in SOL perpetual futures and a decline in on-chain activity. Basically, it’s like trying to get a car moving with a flat tire. 🛠️

Over the past 30 days, SOL has lost 30% of its value, underperforming the rest of the altcoin market. Traders are now wondering if this bear market is going to last forever or if we’re just waiting for a surprise bull run. 😬

It doesn’t help that crypto investors have been losing their faith in the U.S. economy, particularly after signs that the labor market is weakening and everyone’s suddenly obsessed with artificial intelligence. (I mean, who wouldn’t trust a bunch of robots with your life savings, right?) 🤖

Even the CEO of Deutsche Bank’s DWS asset management had to admit that there’s no real way to value the AI sector. I guess that’s code for “we’re just throwing darts at a board here.” 🎯

After a 43-day government shutdown in the U.S., companies like Target, Home Depot, and McDonald’s cut sales expectations. Surprise, surprise. 🙄

And let’s not even talk about the canceled release of the U.S. October CPI and unemployment data. That’s like trying to bake a cake without knowing the ingredients. 🧁

Derivatives Stress and Fading Activity: The SOL Price Struggle Continues

Solana’s woes are a part of the broader decline in risk appetite across the market. But, oh, it gets worse. The launch of XRP (XRP) ETFs in the U.S. has brought fierce competition for institutional funds, with other coins like Litecoin (LTC) and Chainlink (LINK) waiting in the wings. It’s like a crypto party, and Solana didn’t get the invite. 🕺

Traders have been betting against Solana, paying to maintain positions that expect the price to keep falling. SOL’s futures have turned into a kind of toxic asset, with the funding rate in negative territory since Friday. On normal days, that rate hovers around 6% to 12%, but here we are with a market begging for mercy. 😔

Aggregate open interest in SOL futures has dropped 27% in the past month. That’s like everyone packing up and leaving the party early. 🎒

Even worse, the premium on SOL’s monthly futures compared to spot prices has plummeted to 0%. This is a glaring sign that the market’s enthusiasm has disappeared. In a healthy market, this figure would range between 5% to 10%. Instead, it’s the crypto equivalent of a dead zone. 🚫

Until the SOL derivatives market shows some serious life, expect the bearish vibes to continue. No one’s ready to bet the farm on a Solana comeback just yet. 🏚️

The total value locked (TVL) on the Solana network has dropped to $10.5 billion. That’s a 20% decline from just a month ago. Blockchain revenue from fees has hit a new low, which explains why Solana’s not looking so hot compared to the rest of the altcoin market. Ethereum’s fees are down too, but not by nearly as much. 😒

However, Solana does maintain the lead in active addresses and transactions, trouncing BNB Chain by a wide margin. More impressively, Solana has seen a 13% increase in activity, while Ethereum recorded a 15% drop. These stats are a nice little pat on the back for Solana, but they don’t guarantee a bull run. 🐂

Solana has managed to claw back 14% since hitting a low of $121.50 on Friday, but don’t get too excited. A short squeeze to $160 could happen, but it would require a monumental shift in sentiment. Basically, SOL needs a miracle-something like divine intervention from the crypto gods. 🙏

This article is for general information purposes only. It is not intended as legal or investment advice. If you’re making life decisions based on crypto advice from random internet people, well, good luck with that. 🤞

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2025-11-25 03:50