Solana Price Decline Continues Despite Surge in Memecoin Activity
The Solana price has continued to decline, falling back towards the $120 level after failing to maintain January gains despite a sharp increase in trading activity. According to recent data, Solana’s price has been on a downward trend, with the token currently trading at around $122, down 3.3% in the last 24 hours. Over the week, the price has fluctuated between $118 and $134, resulting in an 8.5% decline week-on-week.
Market activity has increased sharply during the pullback, with the 24-hour trading volume for Solana (SOL) rising by more than 270% to $6.42 billion. This surge in trading volume suggests that traders are actively switching positions as the price declines, indicating increased short-term participation. Derivatives data from CoinGlass shows that futures volume rose 256% to $14.79 billion, while open interest fell 0.75% to $7.47 billion, indicating position closure and rapid turnover rather than conviction-driven new investments.
Memecoin Resurgence Fails to Lift Solana Price
The increase in trading activity comes as Solana’s memecoin sector is experiencing a resurgence after a quiet period in 2025. Recent estimates put the total value of Solana-based meme tokens at between $6.8 billion and $8 billion after a wave of speculative inflows earlier this year. Platforms like Pump.fun have seen record sessions, with peak daily volumes of nearly $1.2 billion reported during periods of intense activity. However, the initial excitement has faded, and the price has fallen, suggesting that much of the inflow was related to short-term trades rather than longer-term positioning.
The speculative surge helped lift SOL in early January, pushing the price back above $139 and briefly into the mid-$140s. However, this step has since been reversed, and the price has continued to decline. The memecoin trading increases Solana’s usage and fee activity, but its impact on SOL has been mixed. While it brings attention to the ecosystem, it also leads to increased volatility and unpredictability.
Technical Analysis of Solana Price
On the chart, Solana has slipped below its short-term trend support around $124 and has failed to regain previous consolidation levels. Every attempt to bounce back was met with selling, which kept the pressure on the price. The 50-day moving average, located in the mid-$130 level, continues to act as a ceiling. Since peaking above $240, the price has continued to rise before reaching this area. Selling pressure has also pushed the price closer to the lower Bollinger Band, while the middle band has started to descend lower.
Solana daily chart. Photo credit: crypto.news
The momentum has waned, with the relative strength index falling below the mid-40s and yet to show any significant recovery. The bearish energy has slowed near current levels, but there are no clear signs of a reversal. The $120 zone is now in focus, consistent with past demand and recent consolidation. A daily close below this would provide little support until the psychological $100 area. If buyers intervene and hold the level, the price could stabilize, although upside attempts are likely to remain limited unless SOL can rise above $135-140 again.
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