Why Solana is Crashing Below $140: What’s Next-Will it Recover?

Why Solana is Crashing and Will $SOL Go Up? Reasons Behind the Crash

Solana news today reveals a significant downturn, with Solana (SOL) trading at $138.45 after a sharp 12.6% intraday drop. Over the past week, the Solana crash has led to a 16.27% decline, and in the past month, SOL has fallen by more than 45%. This downturn reflects waning investor confidence, prompting many to ask, “Why is Solana crashing?”

Source: CoinMarketCap

Solana Crash News: Why $SOL Is Dropping Today

Several factors have contributed to why Solana is going down:

• Whale Sell-Off: One of the major reasons why Solana is falling is due to large holders offloading their assets. According to analyst Ali Martinez, 135 whales, each holding over 10,000 SOL, sold or redistributed their holdings between January 25 and February 23. 

Source: X

This led to a decline in whale addresses from 5,167 to 5,032, coinciding with SOL’s price dropping from $257.01 to $168.07.

• Bybit and Infini Hack: Another significant factor in why Solana crashed is its indirect link to the massive Bybit hack. On February 21, hackers stole $1.5 billion in virtual assets, causing panic and a $4 billion bank run on Bybit. The notorious Lazarus Group used Solana-based meme coins for money laundering, further damaging SOL’s reputation.

• Solana Network Activity Drop: Network usage has plummeted, with active addresses dropping by 60% from 18.5 million in October 2024 to just 7.3 million by February 2025. This sharp decline in user engagement highlights reduced interest and utility, contributing to why Sol is going down.

Source: X

• Wintermute Withdrew SOL: Market-maker Wintermute pulled $40 million worth of SOL from Binance ahead of a $2-billion token unlock scheduled for March 1. This move has sparked fears of increased selling pressure, further impacting SOL’s price.

Will Solana Go Up: Is It Worth Buying $SOL Now?

Despite the current bearish trend, several factors could lead to a recovery:

• Circle Mints 250 Million USDC on Solana: Circle recently minted 250 million USDC on Solana, highlighting growing demand for stablecoins on the network. With a total of 8 billion USDC minted on Solana in 2025, this development signals rising DeFi activity, which could boost SOL’s price.

• Solana ETF Filing by Franklin Templeton: Institutional interest is growing, with Franklin Templeton filing for a Solana ETF. If approved, this could bring significant capital inflows into the ecosystem, strengthening SOL’s market position.

• Continuous Expansion and Acceptance: Solana remains a strong competitor to Ethereum, with lower fees and faster transactions. Popular meme coins like OFFICIAL TRUMP and Bonk also contribute to its ongoing relevance.

Solana Price Prediction: Will $SOL Reach $10,000?

Solana price prediction remains cautious in the short term, but a relief rally could occur if SOL breaks above $160, potentially targeting $184-$205. On the downside, failure to maintain the $120 support level may lead to further declines, possibly testing the psychological $100 mark.

Looking further ahead, Solana price prediction 2025 depends on network adoption, institutional interest, and market sentiment. While some speculate “will Solana reach $10,000?” this remains highly speculative.

Given the recent Solana crash, many investors are wondering, “Is it worth buying Solana now?” With the market showing signs of overselling, a short-term rebound is possible. However, cautious optimism is advised, with close attention to market developments and upcoming events like the token unlock.