Why Solana Is Crashing and Will it Go Up: What Trigger $SOL Price

Why Is Solana Falling? Key Factors Behind the Recent $SOL Crash

Solana has recently experienced a significant price drop, causing concern among investors and crypto enthusiasts. At the time of writing, Solana (SOL) is trading at $159.02, reflecting a sharp intraday decline of 7.77% and a weekly drop of over 12%. With a market cap of $78.08 billion and a 24-hour trading volume of $2.96 billion, many are wondering why Solana is going down and whether it will bounce back.

Source: CoinMarketCap

Why Solana Is Crashing: Major Controversies Trigger Price Crash

The recent downturn in Solana’s price can be linked to two major controversies that have shaken investor confidence:

Solana’s Involvement in Bybit Hack : One of the primary reasons why Solana crashed is its indirect connection to the largest-ever virtual asset hack on Bybit. On February 21, hackers stole $1.5 billion worth of virtual assets, leading to a $4 billion bank run on Bybit. It was revealed that the notorious North Korean hacker group, Lazarus, used Solana-based meme coins for money laundering.

According to blockchain analyst ZachXBT, Lazarus created around 500,000 Qin Shihuang coins on Pumpfun, a Solana-based trading platform. The coin’s trading volume spiked to $26 million within just three hours, fueling concerns about Solana’s security.
Once the news broke, Pumpfun removed the Qin Shihuang coin, but the damage was done, contributing to why Sol is going down.

Binance’s Large $SOL Sell-Off via Wintermute: Binance has offloaded massive amounts of Solana ($SOL) in the last 4 hours through market maker Wintermute. Its hot wallet transferred 6.7K–23.9K SOL ($1.07M–$3.83M) to Wintermute, Kraken, and Coinbase, signaling major sell-offs. 

Source: X

This aggressive selling is a key factor behind $SOL’s price decline, as increased supply pressures the market. The move aligns with broader market trends, where liquidity providers adjust positions amid uncertainty, contributing to heightened volatility and downward price action for Solana.

Libra Coin Scam Linked to Argentine President: Another blow came from the "Libra Coin" scandal involving Argentine President Javier Milay. On February 14, President Milay announced support for a Solana-based meme coin, Libra, on social media, claiming it would fund startups. However, the coin plunged by 94% within hours after a massive sell-off from a few wallets, leading many to label it a "rug pull" scam. Milay later deleted his post, claiming ignorance about the project. This incident further eroded investor trust, adding to why Solana is falling.

Will Solana Rise Again? Factors That Could Trigger a Rebound

Despite the recent setbacks, there are promising developments that could help Solana recover:

• Solana ETF Filing by Franklin Templeton
  Franklin Templeton recently filed an S-1 prospectus with the SEC to launch a Solana ETF. This move signals growing institutional interest in Solana and could attract more investors. The growing list of asset managers, including Grayscale and VanEck, seeking approval for Solana-based products, highlights Solana’s potential.

• Continuous Expansion and Acceptance
  Solana remains a strong competitor in the blockchain space, offering lower fees and faster transactions compared to Ethereum. Popular meme coins like OFFICIAL TRUMP (TRUMP), Bonk, and Official Melania Meme (MELANIA) further showcase Solana's market relevance.

Solana Price Prediction: Is It Worth Buying $SOL Now?

Crypto analyst Ali Martinez has predicted that Solana is gearing up for a 13% price move. Based on a symmetrical triangle pattern on the 1-hour chart, a bullish breakout could push Solana to $193.5, while a bearish move could see it drop to $149. 

Source: X

Looking further ahead, Solana price prediction 2025 suggests that SOL could trade between $250.00 and $300.00 by the end of 2025, with the potential to reach $500 before 2030. Some optimists even speculate, will Solana reach $10000 in the distant future.

While the Bybit hack and Libra Coin scam have caused short-term damage, developments like the Solana ETF filing and continuous adoption provide hope for recovery.