Solana Market Hit by Wave Of Treasury-Driven Selling, SOL’s Pullback To Extend?

The cryptocurrency market has turned highly bearish, and Solana‘s price continues to struggle with volatility as it drops toward the $80 level. Amid the persistent waning action, there has been a noticeable selling activity among treasury firms across the sector, which has triggered serious questions about its price outlook in the short to medium term. 

Treasury Holders Are Selling Off Solana

As Solana’s price continues its downward trend into the new week, selling pressure around the asset has increased along with the bearish performance. After a period of dumping from short-term and long-term holders, this selling activity appears to have moved toward the SOL treasury companies across the sector.

Looking at the chart shared by Ted Pillows, a seasoned macro analyst and investor, large Solana treasury companies have been dumping their SOL holdings over the past few months. Currently, these firms are selling significant portions of their holdings towards new lows.

Such a wave of distribution from treasury firms is expanding the available supply of SOL in the market, causing speculation about its price stability in the near term. Furthermore, this typically points to a shift in sentiment or the desire for these companies to reshuffle their crypto portfolios, a key development in the market.

According to the expert, no buying demand is coming for Solana, which is an extremely negative development, and could extend the ongoing bearish price action. Ted believes that the persistent selling from treasury firms might push SOL further downward to the $50 price level in 2026.

In terms of unchain activity, Solana is demonstrating weakening performance as the network sees a massive decline in stablecoin supply. AdrianoFeria.eth on the X platform stated that the SOL network is dying compared to Ethereum, which is thriving, amassing a substantial amount of stablecoin supply.

Over the past month, the SOL network has experienced notable outflows of more than $250 million. In the crypto sector, stablecoin supply is considered one of the few metrics that cannot be gamed or faked, making it a crucial indicator to determine network trajectory.

SOL’s Price Action Still Looking Weak

Solana has lost its upside momentum due to the market’s pullback during the weekend. Following an analysis of the weekly chart, UniChartz, a crypto analyst, has revealed that Solana is exhibiting some weakness and is positioned at a critical support area. 

This support, which is sitting at the near the $81 level, is now a key point in determining the altcoin’s next direction. If SOL makes a clean break down and acceptance below the level, it could trigger a continued downward trend. When this happens, the next big price level to watch out for is around $45.

At the time of writing, the price of SOL is trading at $83 after a brief bounce of 1.14% over the last 24 hours. While the price has slightly increased, its trading volume has picked up, rising by more than 36% over the past day.