Why Is Solana Going Down? Is PI Coin’s Binance Listing the Cause?

Solana Price Crash: Will PI Coin Replace SOL in Traders’ Portfolios?

Why Solana Is Falling Today? Key Factors Behind the 37% Drop

Solana (SOL) has dropped significantly, down 16% in the last week and 37% in the last month. Investors are increasingly nervous as Solana has not been able to hold critical support levels. While the overall crypto market downturn contributes, increased fears among traders have resulted in mounting selling pressure on SOL.

With transfer volume plunging from $1.99 billion in November 2024 to just $14.57 million today (Glassnode data), network activity and investor interest in Solana have significantly declined. Could this signal a long-term problem for SOL, or is this just another temporary market dip?

Whale Liquidations: The $198M Sell-Off That Shocked the Market

Adding to the bearish momentum, a Solana whale recently unstaked 1,366,028 SOL (worth $198 million) and transferred it to FalconX just hours ago. Following this move, FalconX deposited 440,202 SOL ($62.6 million) to Binance and Coinbase, increasing selling pressure in the market.

Such large-scale sell-offs often trigger panic among retail traders, leading to further price declines. With trading volume down 18% to $13 billion, the bearish sentiment surrounding Solana remains strong.

Solana Faces a Critical Support Level at $130

According to crypto analyst Ali Martinez, SOL is exhibiting a right-angled ascending broadening pattern—a bearish technical formation. If Solana fails to hold the critical $130 support level, it could lead to a further decline toward $65.

The Net Unrealized Profit/Loss (NUPL) metric from Glassnode indicates that Solana investors have entered the "fearful" phase, marking a shift from previous months of greedy or optimistic sentiment. The current market dynamics suggest SOL may experience increased volatility in the coming weeks.

Is Pi Coin’s Binance Listing to Blame for SOL’s Decline?

Another reason that may be affecting Solana's fall is the increasing hype surrounding Pi Coin (PI) and its potential listing on Binance. Binance recently held a community poll, and an impressive 86% of the participants expressed their interest in listing Pi Coin.

With over 11.1 million users voting and the poll set to conclude on February 27, 2025, a Pi Coin listing could bring massive attention and trading volume to PI. Some traders might be exiting Solana to invest in Pi Coin, anticipating 100x returns if the listing is confirmed.

Will Traders Dump Solana for Pi Coin?

The value of Pi Coin rose 21% today to $1.90, while the trading volume surged 22% to $878 million. The steep rise coupled with Solana's 50% decline from its 2024 high of $264 has generated rumors that traders may be shifting their holdings from SOL to PI.

If Binance lists Pi Coin, its exposure to 200 million+ users could spark further price surges, making it an attractive alternative for traders looking for exponential gains. Could Pi Coin replace Solana in traders’ portfolios?

Solana Price Prediction: Key Support & Resistance Levels to Watch

Despite the present sell-off, Solana is close to a crucial support at $103.84, which corresponds to the 0.786 Fibonacci retracement. This could be a potential buying opportunity for traders anticipating a bounce.

If SOL holds this support level, it could target the following key levels:

$260.91 – Short-term resistance

$314.58 – Mid-term breakout target

$377.29 – Long-term bullish scenario

A breakout beyond $377 could ignite a strong bullish rally, pushing Solana to new all-time highs. However, failure to hold above $103.84 could accelerate its decline towards $65.

Conclusion: What’s Next for Solana?

The price of Solana has gone through a dramatic fall because of market declines, whale selling, and changing trader sentiment. On the other hand, Pi Coin's possible listing on Binance is gaining tremendous interest, potentially diverting investments from SOL.

For Solana to rebound, it should retain the $103.84 support and continue building momentum toward its critical resistance points. In the event of the listing of Pi Coin on Binance, SOL may lose further attention from traders.

Traders ought to monitor the price action in Solana for the next several days to identify if this dip is a value opportunity or evidence of more downswings.