Solana has recovered by 8% today, with its move to $148 coming as the wider crypto market posts a 5% gain in the past 24 hours. SOL’s bounce puts it up by 5.5% in a week, but it remains down by 12% in a fortnight and by 26% in a month, following a period in which the Bybit hack and an incipient trade war have depressed the market. However, with Solana’s volume touching $10 billion today, it seems that demand is finally recovering after a leaner period, with the coin likely to recover more in the coming weeks. Solana Crashes 12% as Daily Trading Volume Surges to $10 Billion – Are Whales Dumping? Solana crashed heavily earlier this week, but its falls have put it in a strong position to mount a concerted recovery, which it appears to have begun today. The key indicator to watch is its 30-day moving average (orange), which dropped below the 200-day (blue) at the end of February and may be close to bottoming out. Source: TradingView At the same time, SOL’s relative strength index (purple) has bounced from 25 a week ago, and while it dipped from 50 earlier this week it’s rising again. This suggests an increase in demand, and with the coin’s 24-hour volume increasing by 200% in a matter of days, it seems that buyers are jumping on SOL while it’s still cheap. Yet its medium- and long-term fate depends on wider market conditions, with a possible trade war between the US and various trading partners (China, Canada and Mexico) suppressing demand and raising the specter of recession. However, there is speculation that Trump could quickly scale back the recently introduced tariffs against Canada and Mexico, something which could lift markets. Trump folds as S&P 500 touches 200-day *LUTNICK: TRUMP MAY LOWER CANADA, MEXICO TARIFFS TOMORROW pic.twitter.com/WYP7C7VyZG — ʎllǝuuop ʇuǝɹq (@donnelly_brent) March 4, 2025 If so, demand for Solana is likely to return quickly, with the coin continuing to boast some of the strongest fundamentals in the cryptocurrency market. Its layer-one network boasts a TVL of $7.41 billion (or 7.5% of the entire crypto ecosystem), while upcoming upgrades are going to make it even more efficient and reliable. Because of this, the Solana price is likely to return to growth once the current economic situation has stabilized. It could hit $200 by the middle of Q2, before returning to $300 by H2. Solana Prepares for Launch of First Ever L2 Network One thing to watch out for, however, is the FTX unlock that took place on March 1, which has begun releasing a significant stream of SOL tokens into the market . This could dampen the coin’s price for much of this year, in which case many traders may prefer to consider alternatives. While there’s no shortage of new coins in the market, many are very risky, with little in the way of fundamentals or utility. However, one exception to this is Solaxy (SOL), a new layer-two network for Solana that has now raised $25 million in its hugely popular ICO. As an L2, Solaxy will help Solana users avoid failed transactions and delays, all of which can still impair Solana during peak periods. It will also enable instant bridging between itself and Solana (and other chains), and is aiming to become an important platform for meme tokens and DeFi. And because SOLX will be necessary to pay for Solaxy’s transaction fees, it’s likely to experience strong demand, rising in parallel with the L2’s growth. The SOLX presale will end soon, but latecomers can still join at the official Solaxy website . They can buy SOLX at its current price of $0.001654, which will continue to rise until the sale ends, so buyers should act quickly. The post Solana Crashes 12% as Daily Trading Volume Surges to $10 Billion – Are Whales Dumping? appeared first on Cryptonews .
