Solana price drops below $90, hitting a two-year low: On-chain transactions surge, can SOL rebound?

Solana (SOL) price dropped to $89 on Monday this week, hitting the lowest level since 2024. It is currently hovering around $91, representing a cumulative decline of over 16% in the past week. Against the backdrop of Bitcoin falling below $73,000 and Ethereum losing the $2,100 support, SOL repeatedly failed to hold above the $100 support level, indicating short-term downward pressure.

Notably, while the price weakened, the Solana network maintained high activity. On January 30, the blockchain processed approximately 148 million transactions (excluding governance votes), one of the highest levels in history, demonstrating that users are still actively using the network. This divergence of “price decline, usage increase” highlights a disconnect between current market sentiment and fundamentals.

Institutional deployment also continues. The market capitalization of tokenized stocks on the Solana chain has reached $230 million. WisdomTree recently expanded some of its tokenized investment products to this network. Meanwhile, payroll platform GustoHQ has begun conducting real-time cross-border settlements via USDC on Solana, reflecting ongoing enterprise adoption.

However, funding and derivatives data remain cautious. Over the past three weeks, the average daily inflow into Solana-related ETFs has been less than $9 million, with some trading days even experiencing net outflows. Open interest has decreased to $6.37 billion, and the weighted funding rate is negative, indicating a market leaning toward defense. Technically, SOL has broken below several key moving averages, with RSI near 28, suggesting short-term volatility risks.

Structurally, resistance is seen between $93 and $97. Only if the price reclaims $100 can selling pressure be alleviated. Despite short-term pressure, some institutions remain optimistic about the long-term outlook. As Solana expands into high-frequency trading, micro-payments, and artificial intelligence applications, its network value still holds potential.