While the Solana ecosystem showcases significant technological advancements at its Breakpoint conference in Abu Dhabi, its native SOL token faces mounting selling pressure in the markets. The digital asset is currently trading near $131, reflecting a decline of approximately 6% over the last day, despite a series of positive fundamental developments.
A Critical Support Level Test
Technically, SOL is in a precarious position, trading below its 50-day moving average. Bears are testing a crucial support zone around $130. A decisive break below this level could trigger a slide toward $120. For any short-term bullish reversal to gain credibility, the price would need to reclaim and hold above the $145 resistance mark.
This price weakness stands in stark contrast to the robust news flow from the ecosystem. The underlying issue appears to be a pronounced lack of market depth. On-chain metrics reveal liquidity conditions have deteriorated to levels reminiscent of previous bear markets. This thin order book means even moderate sell orders can precipitate disproportionately large price swings.
The Shadow of Leveraged Positions
Compounding the risk is a substantial volume of leveraged long positions. Data indicates that a further price drop of just 5.5%, pushing SOL below $128, could force the liquidation of roughly $500 million in long contracts. The current market sentiment is further evidenced by a Realized Profit-to-Loss ratio below 1.0, signaling that realized losses are outweighing gains across the network. This setup creates the potential for a sharp long squeeze, overshadowing the constructive ecosystem news.
Should investors sell immediately? Or is it worth buying Solana?
Breakthroughs Announced at Breakpoint
Amid the market tension, the Solana Breakpoint 2025 conference unveiled major integrations and performance upgrades. Leading exchange Coinbase announced it will enable direct trading of newly created Solana-based tokens. This feature is designed to lower barriers for users seeking access to Solana’s decentralized finance (DeFi) applications, effectively bridging centralized exchange liquidity with the on-chain ecosystem.
In parallel, Jump Crypto’s new validator client, Firedancer, demonstrated substantial performance gains in live demonstrations. The software significantly boosts transaction throughput while reducing latency, marking another leap forward in preparing the network for institutional-grade applications. Anthony Scaramucci of SkyBridge Capital expressed strong conviction during the event, suggesting 2026 could be a breakthrough year for real-world asset tokenization on Solana, with potential involvement from major financial institutions like JPMorgan or Blackstone.
The Decoupling of Fundamentals and Price
The present scenario highlights an unusual divergence. The Solana network is technologically more capable and attracting greater institutional interest than ever before. Yet, the token’s price action is being dictated by macroeconomic uncertainty and critically thin market liquidity. The key question for traders and investors in the coming sessions is whether the $130 support will hold and if the positive developments from Abu Dhabi can ultimately catalyze renewed buying interest to close the gap between technical promise and market performance.
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