Most Solana Holders Now in Loss as Market Decline Continues

Solana is struggling to recover as the broader crypto downturn extends, leaving a large portion of its circulating supply in loss and increasing the likelihood of stronger downside moves.

Latest on-chain data shows that nearly 80% of all SOL in circulation is currently below its cost basis. Analysts warn that when the majority of investors fall into loss territory, the market often becomes more fragile, as traders try to protect remaining capital.

According to market data, about $239 million in leveraged long positions would be liquidated if Solana drops under $124.40, creating a concentrated pressure point that could accelerate price declines. Solana is trading close to $129, showing minor movement in the past 24 hours but still sitting near a zone where forced selling could increase rapidly.

Prediction markets currently give low probability of Solana setting a new all-time high by year-end, indicating that speculators expect weaker conditions ahead.

Lawrence Samantha, CEO of NOBI, noted that large liquidation phases tend to reset overheated market structures, allowing stronger bases to form later. However, he also pointed out that Solana-focused treasury desks remain deeply underwater, with many managing values near 0.6 mNAV. Further losses could force these desks to offload assets to cover operational requirements, which would add more sell-side pressure.

Key Economic Events Traders Are Watching

Although the market has been under pressure for several weeks, a brief weekend rebound has steadied sentiment. Traders are now monitoring two upcoming developments:

• The Federal Reserve’s interest rate decision on December 10

• The anticipated conclusion of the current quantitative tightening phase

Either event could trigger sharp price movement across risk assets if the announcements differ from expectations.

Samantha noted that daily price swings offer limited insight compared to long-term positioning. He pointed to steady inflows into spot Solana ETFs, which have added roughly $719 million since their debut without a single negative netflow day. According to him, this reflects sustained institutional demand rather than short-term speculation.

When asked about the possibility of a market bottom, he said current conditions do not yet meet typical bottoming indicators. Historically, durable lows appear when leverage is cleared out, volatility drops, and long-term buyers begin accumulating quietly.

Price levels around Solana remain sensitive because of the large liquidation cluster sitting just under the current range. Market participants are monitoring the same support zones that triggered heavy position closures earlier this month. These areas have repeatedly produced high liquidation volume, which is why they remain central to traders’ short-term analysis.

Also Read: Why Some Investors Are Buying Bitcoin Before the Year Ends