The cryptocurrency market has faced significant challenges over the past two months. October is usually a bullish month for the crypto market, but 2025 had other plans. The bearish trend continued in November, causing huge losses for investors. Solana (SOL), one of the best-performing cryptocurrencies in 2024, has seen massive capital outflows in recent weeks amid the market crash. According to CoinGecko data, SOL price is down 6.9% in the past 24 hours, 2.6% in the last week, 9.9% on the 14-day chart, 31.4% month-over-month, and 46.6% since December 2024. Solana (SOL) rose to an all-time high of $293.31 in early January of this year, but has since fallen further. 56% from peak.
Why you shouldn’t fear Solana’s price crash
Solana (SOL) has proven to be one of the most resilient cryptocurrencies on the market. After FTX’s collapse, the asset’s price fell to the $9 level in 2022. Since the 2022 low, SOL price has hit multiple all-time highs. Looking at SOL’s historical data, it’s safe to assume there’s no need to fear this asset’s current woes.
The recent market crash may be due to renewed volatility after the Thanksgiving holiday. Additionally, China’s reaffirmation of its stance on banning cryptocurrencies could further increase price volatility. However, Solana (SOL) and the larger crypto market are likely to recover in the coming weeks. The likelihood of further interest rate cuts this month has increased significantly over the past week. If the US Federal Reserve cuts interest rates by another 25 basis points (bps), inflows into risk assets such as cryptocurrencies could surge.
Solana (SOL) has also launched several ETFs in the past few weeks. ETF inflows are likely to accelerate in the coming days. Either development could result in SOL returning to the $200 level.
(Tag translation) Solana
