Solana Faces Mounting Pressure as Bearish Sentiment Intensifies

Solana’s on-chain revenue plunge, collapsing futures, and ongoing technical concerns threaten its price support and broader market confidence.

Rich by Coin

2026-02-20

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Solana faces a severe confidence crisis as network revenue plummets, futures interest collapses, and technical issues mount, threatening a key price support level. The blockchain’s fundamental health is showing clear signs of strain. Weekly revenue generated from decentralized applications on Solana has plummeted to its lowest point since October 2024. A critical vulnerability is its heavy reliance on speculative trends: during the reporting period, the memecoin platform “Pump” alone accounted for approximately 40 percent of the network’s total revenue.

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As enthusiasm for memecoins and NFTs continues to wane, the network’s economic foundation is eroding. Technical uncertainties are further damaging market sentiment. Following critical security vulnerabilities in January that required validator updates, performance issues in early February renewed concerns about the infrastructure’s reliability. This skepticism is mirrored in the institutional sphere: Solana-based ETFs currently hold only a fraction of the assets under management compared to similar Ethereum products.

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Metrics from the derivatives markets reveal profound pessimism among traders. The open interest for Solana futures contracts has collapsed by a drastic 75 percent compared to its high five months ago. This indicates that market participants are de-risking rather than establishing new positions. The funding rates are particularly alarming.

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Short sellers are currently paying an annualized rate of 20 percent to maintain their positions. In contrast, sentiment around Ethereum appears more stable, with its funding rates in neutral territory. The recent pattern of rising open interest alongside falling prices is a classic technical indicator that new short positions are being established. The combination of technical vulnerabilities, declining usage, and a strong US dollar—which is currently pressuring risk assets globally—has pushed Solana’s price into a dangerous zone.

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Market observers are now closely watching the $80 support level. With the current price hovering around $82 and a notable absence of positive catalysts, a decisive break below this critical support could trigger an accelerated wave of selling.