As the crypto markets dropped after Bybit’s recovery from the largest crypto theft in history, sentiment has turned overwhelmingly bearish and caused major dips to continue through the following week.
Bitcoin ($BTC) fell around -20% in the final week of February, while Ethereum ($ETH) was hit by drops totalling -26%. The price of Solana ($SOL) also took significant damage with a -25% move, contributing to a total of -57% from the L1 cryptocurrency’s all-time high of almost $296, set on January 19.
Amid the ongoing chaos, on-chain analysts have discovered major bullish whale activity surrounding the SOL cryptocurrency, highlighting the need for investors to look beyond red candles and focus on buying opportunities.
A whale bought 50,000 $SOL($6.77M) at the bottom 7 hours ago.
From November 20, 2024, to January 21, 2025, this whale sold 122,921 $SOL($28.23M) at an average price of $230, and now he repurchased $SOL at a lower price.https://t.co/JM8OuP0AwZ pic.twitter.com/rmT2pXa4VI
— Lookonchain (@lookonchain) February 27, 2025
Meanwhile, Solana’s first Layer 2, Solaxy ($SOLX), has also raised nearly $24 million in its presale – and continues to give Solana supporters many reasons to expect a bullish 2025.
Solana Dip Disguises Hidden Opportunities
During large market dips – especially those that can be considered “corrections,” as they involve drops over 10% – panic and other negative emotions can easily cloud the judgement of even the most experienced investors.
Seeing large red candles on a price chart can be fear-inducing, especially when they come in quick succession. When this happens, zooming out and examining higher time frames can help to provide a birds-eye view of an asset’s price performance, and identify important levels to watch.
In the case of Solana, the presence of extensive wicks on a large number of daily candles shows how volatile this cryptocurrency has been since Donald Trump won the US presidential election on November 5:
In fact, SOL has been so volatile that it’s barely sustained a useful range or price trend for a meaningful period of time. Instead, SOL has generally stayed above $180 and below $260, with multiple extensions above and below those key levels – and an all-time high of nearly $296.
This continuous state of instability and uncertainty indicates that Solana’s price action is mainly driven by market sentiment – which keeps changing due to the Solana blockchain’s scalability and reliability issues.
Controversies surrounding the Solana meme coin community and launchpads like Pump.fun are also ongoing, creating even more fear around SOL’s potential as a long-term investment. Pump.fun suspended its livestreaming service when meme coin creators started broadcasting harmful material to promote their tokens – and the entire platform was banned in the UK by the country’s financial regulator.
Above all else, Solana’s biggest problems are failed transactions, network congestion, and the blockchain’s general scalability limitations. At the time of writing, Solana whales are still buying the SOL dip (establishing key support above $120), and a solid rebound would help to establish higher lows and a new uptrend.
For some savvier Solana watchers, however, the Solaxy ($SOLX) Layer 2 scaling solution is a tasty SOL alternative right now.
Solaxy Ready to Rescue Solana, ICO Nearing $24 Million
As noted above, Solana has not been able to create and sustain price trends or ranges that last long enough to enable high-probability price predictions – at least since November 2024. At the present time, bullish investors seem to have settled on $120 as a price level to front-run, creating sharp wicks and bounces that could lead to a new pump throughout March and April.
This makes Solaxy ($SOLX) arguably the most important part of the Solana ecosystem right now. As the very first Layer 2 (L2) solution for Solana, Solaxy aims to resolve some of the pain points that still restrict Solana builders and users from enjoying a consistently reliable Web3 experience. We’ve seen how these problems are causing major instability in the price of SOL – but Solaxy’s 2025 launch could set Solana on a bullish course for years to come.
Investors looking to be part of this historic development have already poured almost $24 million into the presale for SOLX, Solaxy’s native cryptocurrency. SOLX will act as a transaction fee payment method within the Solaxy network – and it will also enable groundbreaking levels of interoperability, thanks to its compatibility with the Ethereum and Solana blockchains.
This means that Web3 builders can draw on Ethereum’s liquidity resources while still benefiting from Solana’s speed and low network fees – making Solaxy and SOLX an ideal choice for DeFi, GameFi, meme coin, and NFT projects that generate high Solana traffic volumes.
For a limited time, the Solaxy presale is offering SOLX tokens at a discounted price of $0.001648. Passive income options are also useful during market dips – and SOLX tokens can be staked for an APY of 170% pa.
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