Solana slipped below the $100 level on the 2nd of February, marking its lowest point since early April last year. The decline followed a broader market pullback triggered by heightened geopolitical tensions and macroeconomic uncertainty over the past week.
Risk appetite weakened across crypto markets, and SOL tracked the downside alongside other large-cap assets.
Funding flips negative again
Derivatives data reflected growing seller control.
SOL’s Funding Rates turned negative again, printing -0.006% at press time. The move followed a sharper -0.044% dip the previous day, signaling a shift in trader positioning.
Negative Funding Rates typically indicate short sellers paying to maintain positions, a sign that bearish bias outweighs bullish leverage.
Could history repeat itself?
That shift mirrored conditions seen earlier in the cycle.
The last time SOL’s Funding Rates fell to similar levels on the 10th of October 2025, price action followed with a sharp downside continuation.
If seller dominance persists, Solana [SOL] could remain vulnerable to further losses in the near term.
Market activity offers a mixed signal
Even so, on-chain data offered a counterpoint. Despite the price decline, Solana’s Active Addresses began recovering.
Santiment data showed daily Active Addresses rose by roughly 870,000, bringing the total to 4.87 million. That increase suggested renewed user activity rather than broad capitulation.
Rising Active Addresses during price weakness can signal underlying demand or early accumulation.
Where SOL stands now
Solana appeared caught between conflicting signals. Bearish derivatives positioning and macro pressure pointed toward caution.
At the same time, improving network activity hinted that downside momentum may not be one-sided.
Whether SOL stabilizes or extends losses will likely depend on how long seller control persists and whether on-chain recovery converts into sustained buying interest.
Final Thoughts
- SOL’s drop below $100 aligned with a broader risk-off move across crypto markets.
- Despite price weakness, Solana’s Active Addresses rose by around 870,000, lifting total daily activity to 4.87 million.
