## Solana faces persistent downtrend: memecoin activities and institutional selling in focus Solana is going through a challenging phase in the market. Since the beginning of 2025, the coin has experienced a significant decline of approximately 58.6%, retreating from its peak of $293 to the current $122.04. This negative performance over 12 months, with an accumulated retracement of 38.21%, highlights structural pressures beyond normal market fluctuations. ### Large holder selling dynamics According to technical analyses, large holders of the network initiated an early distribution of their assets months before the peak. This movement suggests that certain institutional investors or early-stage players recognized signs of exhaustion and began to strategically reduce their positions. The gradual and precise sale of these substantial volumes contributes to ongoing pressure on prices. ### Impact of memecoin trends on the ecosystem The memecoin phenomenon on Solana accelerated this downtrend. Launches like the $TRUMP token in January attracted speculative liquidity, diverting capital from more established assets. The subsequent decline of this token category coincided with sharper drops in SOL itself, creating a cascading effect in the market. ### Contradictory signals from network activity While retail investors maintain relatively stable activity on the network, more concerning data emerges from institutional dynamics. Medium-sized wallets and large institutions show a notable decrease in network engagement, suggesting that selling pressures are not superficial but reflect a shift in participation strategies of more sophisticated players.

A notable trader has been executing sharp moves in the crypto markets. The account liquidated 255 BTC—worth approximately $21.77M—through strategic short positions across BTC, ETH, and SOL, ultimately closing out these trades for $3.85M in realized profits. Not stopping there, the trader has already re-entered short positions in the same trio of assets, currently holding $1.77M+ in unrealized gains. The consecutive winning trades suggest strong timing and market conviction in the current downward pressure across these major tokens.