Solana could decline to $222 despite recent ATH – Here’s why

A spike in Solana’s transaction fees and a sharp decline in transaction count have contributed to bearish market sentiment.
SOL could test the $222 support level before attempting a recovery.

In the past few weeks, Solana [SOL] enjoyed an impressive rally, gaining 28.20%, which propelled it to a new all-time high of $294.33 on the 19th of January. However, the token has since declined by 18.75%.

According to analysis by AMBCrypto, key metrics currently suggest unfavorable conditions for SOL, with the possibility of further declines in the near term.

Downtime could impact SOL’s gains

According to Glassnode, the Solana blockchain recently hit an unprecedented milestone as transaction fees surged significantly within a short period, following the launch of the TRUMP token.

Data reveals that 6,000 SOL—worth approximately $1.4 million (based on SOL’s press-time value of $239.55)—was paid in fees within just 10 minutes, marking a record high for the network.

Source: Glassnode

This spike in fees saw the number of transactions on the network decline sharply during the same timeframe. Transaction count dropped from 450,000 to 150,000—a difference of 300,000 transactions.

This decrease signals reduced network activity and drop in market interest.

A pattern such as this often precede price declines, a trend currently affecting SOL, contributing to its 11.86% drop in the past 24 hours.