- The $180 support level for Solana is crucial for the 2025 price action
- The social volume and declining active addresses could indicate further losses for Solana
As we kick off 2025, the crypto market is experiencing increased volatility, with several assets testing critical support levels. One such asset that is being closely watched is Solana [SOL]which hovers around the key price point of $180. This threshold has emerged as a crucial level for traders as the market braces for potential price swings.
Social Volume – A signal for Solana’s price movements
Solana’s social volume shows a noticeable correlation with price fluctuations, as shown in the attached chart. Peaks in social activity often precede significant price volatility.
In recent months, increased social talk around Solana has coincided with upward price momentum – hinting at a potential sentiment-driven rally.
Source: Santiment
However, as social volume remains high, it can also act as a double-edged sword, signaling excessive market enthusiasm or the possibility of a reversal.
Traders who closely follow these trends should be wary of sharp shifts in sentiment, especially if Solana fails to hold above $180. Sustained increases in social engagement without price validation could signal weakening support and the risk of further declines.
Purchase active addresses
However, the recent decline in Solana’s active addresses revealed a troubling trend. From the beginning of December to the end of December, the number of active addresses fell sharply, from almost 6 million to just over 3.5 million – a drop of more than 40%.
While the metric saw a modest recovery in early January, it remains far from its previous highs, indicating reduced network activity and engagement.
Source: Het Blok
This decline in active participation raises concerns about declining utility and user confidence. Historically, sharp declines in the number of active addresses often precede downward price pressure, reflecting declining demand.
For Solana, maintaining price levels around $180 could depend on this trend reversing. Without a significant increase in activity in the chain, the risk of further price erosion is high.
Read Solana’s [SOL] Price forecast 2025–2026
Solana – What’s next?
Solana appeared to be in a precarious situation at the time of writing, with $180 acting as a crucial pivot point. The RSI indicated bearish momentum approaching oversold territory, which could lead to further selling if it breaches $180.
Immediate downside targets include $165, followed by $130-$150, where stronger support could emerge.
Source: TradingView
On the upside, the recovery of $190 could signal a relief rally, possibly targeting $200. However, weak trading volumes and declining on-chain activity could limit profits. In the absence of renewed buying interest or fundamental catalysts, Solana risks entering a prolonged consolidation phase or deeper retracement, highlighting the importance of $180 as a make-or-break level.