Solana falls 3% despite $1.3 billion in weekly stablecoin inflows

Solana price fell below a crucial support level around $123 on Monday morning, as BTC and most altcoins were rejected. GROUND collapsed to an intraday low of around $117.75, as it hit a hurdle at the $126.84 level, according to Coingecko data.

This level is its lowest since December 2025 and is more than 58% below September’s high of $253.

SOL is down 3.7% over the past 24 hours, trading at $122.16 as of 5:24 a.m. EST. However, trading volume soared 319% to $6.7 billion, a sign that trading activity is increasing.

The price drop comes even as Solana’s weekly stablecoin inflows reached over $1.3 billion.

Solana attracts $1.3 billion in stablecoin inflows

Solana saw the largest stablecoin inflows across any blockchain over the past week, adding around $1.3 billion in new stablecoin supply, according to Artemis data.

Such a trend signals increasing capital flows into Solana and a shift to blockchain for faster and more active transactions. Therefore, liquidity continues to rely on its DeFi ecosystem.

Based on the data, the Ethereum ecosystem saw an outflow of approximately $3.4 billion in stablecoin supply, marking one of the largest weekly outflows in recent months and highlighting a shift in user behavior.

The move from other blockchains to Solana can be attributed to its lower fees and higher throughput compared to Ethereum, often described as the most expensive blockchain in the crypto space.

While SOL price remained stretched, fundamentals remained strong ahead of the next Alpenglow upgrade in February or March.

Solana metrics jump and are much better than other blockchains, according to Naansen data.

Meanwhile, staking activity reached an all-time high of 70%, with over $60 billion worth of SOL staked. This shows strong conviction from long-term holders, signaling that investors were committed to the future of the network.

As fundamentals turn positive, can Solana price recover from its 9% weekly decline?

Solana price still under bearish pressure

Solana price is currently returning to the $120 demand zone, an area that previously served as a weekly consolidation base.

SOL remains below the 50-day and 200-day simple moving averages (SMA) on the weekly chart, indicating that the price is still under bearish pressure.

Recent price behavior shows SOL moving sideways in a wider range, with buyers consistently hovering around the $120-$130 region. This repeated defense suggests that long-term market participants continue to accumulate, even as short-term traders reduce their exposure.

The bearish pressure was fueled by SOL price forming a double top pattern, which could signal further decline.

Meanwhile, the 50-day SMA crossed below the 200-day SMA, forming a deadly crossover around the $167 level amid the recent decline above the $130 area.

Momentum indicators support this view. The weekly RSI is currently at 37.33, following a recent decline which suggests sellers are still in control.

SOL is back at the $110-$125 support zone, which has recently held the price up since its dramatic rebound in 2023.

The deadly crossover and falling RSI indicate that the price is likely to decline further. If this happens, SOL price could continue to fall, risking a sustained fall towards the $110 support zone in the coming days.

Conversely, rising fundamentals could signal a recovery. In such a scenario, the Solana token is expected to reclaim the 50-day SMA around $166. If this happens, Solana price could return to the $179 area, which previously served as support and now serves as resistance.

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