Solana Price Tops Out as Revenue Peaks – Can $175 Support Hold?

Solana price seems to have formed a local top following the recent spike in app revenues. At press time, SOL trades at $183, marking its lowest level in two weeks. The ongoing downward pressure is pushing SOL toward a crucial support level, a breakdown of which could kickstart a strong bearish trend.

Analyst Calls Solana’s Local Top

According to analyst 0xngmi on X, a spike in Solana’s app revenue coincides with local tops. For instance, SOL’s value reached an all-time high of $294 on January 19, 2025, a day before app revenue soared to record highs. 

Despite the ongoing meme coin hype on Solana following the recent launch of the Libra meme coin, app revenue on the network has plummeted significantly. Per decentralized finance (DeFi) data aggregator platform DeFiLlama, this metric has dropped to $1.9M, which is a nearly 95% decrease from a record high of $35M recorded on January 20, 2025.

Given that the app revenue is now plummeting, it indicates that SOL is facing bearish trends that could push the prices lower.

However, according to another analyst Dynamo_Patrick, app revenue can also be used to measure local bottoms, which is the price at which new buyers enter the market. He noted that in May and September last year, Solana hit local bottoms as app revenue plummeted to fresh lows. 

If history rhymes and selling pressure eases as buyers reenter the market, it could mark a bullish reversal for SOL. 

Solana Price Faces $2B in Selling Pressure

Solana is also facing selling pressure due to the upcoming unlock of 11.2 million SOL worth approximately $2.06 billion. According to X user ai_9684xtpa, these tokens were sold during the FTX bankruptcy auction in 2024.

As Coingape reported, the FTX bankruptcy estate disposed of 41 million SOL tokens through an auction that drew the attention of firms such as Galaxy Digital and Pantera Capital. These tokens were subject to a vesting schedule where they would be gradually released to the market over a period of four years. 

The first batch of these tokens will be unlocked in less than two weeks, and if they are sold, it could exert downward pressure on price. 

Can SOL Hold the $175 Support Level?

Sellers are already active as seen in the drop in the Relative Strength Index (RSI) to 36, indicating that the momentum is bearish. SOL was also trading at the 200-day Simple Moving Average (SMA) at $183, and if it closes below this long-term support, it will confirm a sentiment shift that could precede a drop to the support level at $175. 

Conversely, if SOL successfully defends support at the 200-day SMA, it needs to rally past the 50-day SMA ($212), which will ignite a resumption of bullish trends. 

Analysts also speculate that despite these headwinds, Solana price forecast remains bullish. According to Daniel Cheung, the growth of the Solana blockchain and the pending approval of spot exchange-traded funds (ETFs) could bode well for the price.