Solana Price Hits $272: Can SOL Break $295 All-Time High Soon?
Despite a strong start to 2025 with a 34% YTD rise, Solana's native token SOL faces resistance, signaling caution for traders eyeing new highs.
By Tylt Editorial Team
Solana (SOL) rallied 7% on Jan. 22, reaching $272, but remains below the $295 all-time high.
Declines in onchain metrics and network fees raise concerns about sustainability.
Shifting trader focus to stocks and balanced leverage demand signal potential delays in SOL's next breakout.
Solana's native token, SOL, climbed 7% on Jan. 22, rallying to $272 despite failing to reclaim the critical $260 support level. This surge builds on a strong start to 2025, with SOL gaining 34% year-to-date, outperforming the broader altcoin market, which has grown 10% during the same period. A significant portion of this momentum stems from heightened interest in memecoins, particularly following the launch of the Official Trump token on Jan. 18.
However, SOL's path to breaking its all-time high of $295, set on Jan. 19, appears fraught with challenges. Key onchain metrics, such as Solana network fees, have shown significant declines. Fees dropped by 67% to $11.7 million on Jan. 21 compared to Jan. 19, mirroring reduced trading activity across platforms like Raydium, Pump.fun, and Orca. Notably, other decentralized applications such as Jito, Meteora, Photon, and Moonshot.money maintained steady fee levels, reflecting uneven network performance.
Daily active addresses also saw a dip, dropping from 16.5 million on Jan. 20 to 13 million, according to Glassnode data. While Solana continues to dominate decentralized exchange (DEX) volumes, recording $11.9 billion on Jan. 21, traders appear to be shifting their focus toward stocks amid broader optimism surrounding Donald Trump’s presidency and its potential economic impact.
The S&P 500 reached an intraday record of 6,100 on Jan. 22, driven by gains in companies like Netflix, Oracle, and Nvidia. Enthusiasm for artificial intelligence and technology investments has bolstered market sentiment, further diverting attention from cryptocurrencies.
SOL futures markets also reflect a cautious outlook, with funding rates for perpetual contracts balanced at 0.5% per month, indicating an equilibrium between bullish and bearish positions. Although a brief spike in demand for short positions occurred on Jan. 20, overall leverage demand remains subdued.
Without a fresh catalyst, such as regulatory approval for a Solana spot exchange-traded fund, the likelihood of SOL revisiting or surpassing its $295 all-time high in the near term appears limited.
