The performance of Solana (SOL), the sixth-largest cryptocurrency, faced a massive decline since its rampant growth throughout 2024 impressed investors. The token, which entered 2025 priced at $189.53 and quickly soared beyond $294.33 in late January, is now priced at $129.13 following a 32.96% drop over the past 30 days.
Solana’s token price and on-chain activity downturn started after the launch of Official Trump (TRUMP), which made Solana Layer 1’s congestion issues more prominent than ever, with transactions taking up to 16 hours to finalize.
As SOL nears its critical support level of $120, it is expecting a big boost from the launch of Solaxy (SOLX). This presale project is building the first Layer 2 blockchain that will help Solana deal with its congestion issues, potentially helping the chain regain investor interest and setting it on a path to $500.
Solana Could See a Reversal as It Upgrades Its Network’s Scalability
Solana’s poor performance over the past two months has brought the altcoin to its early 2024 levels, and as it gets closer to its 52-week low of $110.61, it could see a further drop in value.
According to Sneaky, an altcoin analyst, the token could dip to $105, which would signal an excellent buying opportunity as he expects it to soar long term.
However, market researcher UFO Calls believes the token won’t dip below its current support level of $120, expecting a soar to the $1,000 level for SOL in this cycle.
Source: UFO Calls’s X
The bullish sentiment surrounding SOL comes from its technical indicators that suggest the token could rebound in the near term, such as its 14-day Relative Strength Index (RSI) of 34.79, which suggests the token is entering oversold territory.
Additionally, it has an impressive 24-hour long/short ratio of 3.83, which means only 20.69% of traders are shorting SOL, reflecting investor confidence in its short-term growth potential.
Until recently, Solana was the market’s fifth-largest cryptocurrency, but a combination of market-wide bearish sentiment and Solana’s mainnet congestion issues had a negative impact on its price and helped BNB (BNB) flip it.
BNB, which had less than half of Solana’s users throughout December and January, is now also enjoying more active daily users than Solana, according to token terminal data.
Kyledoops, a technical analyst, pointed out that Solana lost 40.80% of its daily active users over the past 30 days, which undoubtedly influenced its token’s downturn. Although Solana isn’t typically associated with Layer-2 chains, its upcoming Firedancer upgrade suggests the chain is actively trying to improve its scalability, as its congestion-related issues dealt a heavy blow to its user count and token performance.
That’s why Solaxy could be joining the market at a perfect time, as its upcoming Solaxy Layer 2 blockchain could reignite investor interest in Solana, potentially driving its price above its previous ATH of $294.33.
Solaxy Becomes One of the Most Anticipated Presales With $25 Million Raised – Can it Send SOL to the Moon?
To help Solana deal with its congestion issues that often result in slow or failed transactions, Solaxy’s Layer 2 solution will leverage rollups. With rollups, Solaxy will process transactions off-chain after bundling them and then finalize them on Solana’s mainnet to retain its transparency and security.
By taking the burden off Solana’s mainnet, Solaxy aims to provide investors with faster transactions and lower gas fees, encouraging them to stay in Solana’s ecosystem.
Investors can currently purchase SOLX for $0.001658 using ETH, SOL, USDT, or a credit or debit card. Alternatively, the presale accepts BNB payments from Best Wallet’s users, as the project is featured in its “Upcoming Tokens” section which makes it easily accessible to its 250,000+ monthly users.
With 10% of its total token supply allocated to liquidity, which reduces the risk of a rug pull and lowers slippage, Solaxy’s developers show commitment to investor security. Additionally, Coinsult’s audit of the project’s smart code confirmed there are no underlying issues in its code.
The team of experts behind 99Bitcoins, a YouTube channel with over 725,000 subscribers, are confident SOLX is poised for a 10x surge once it hits the DEXs and urge their audience to enter the presale while the per-token price is low.
The experts highlighted Solaxy’s focus on community growth, pointing to its impressive 81,000+ followers across X (Twitter) and Telegram. They also praised the project’s transparency, as the team behind Solaxy regularly shared dev updates, with the latest update showcasing their work on a token launchpad expansion for the upcoming Solaxy ecosystem.
Although the crypto market is as volatile as ever, Solaxy stands a solid chance to explode on launch if it keeps its early presale momentum as it works on improving Solana’s scalability, making this the best time for investors to add it to their portfolios.
