Solana made all-time highs in January 2025, and now about a year later it has dropped approximately 70% from its all-time highs. This is one of the biggest bear markets we have seen in a while.
Some politics have also been helping this bear market, with some exchanges like Coinbase being linked to very controversial topics, this has caused a lot of investors to feel like they can’t trust the market right now and some have even stopped buying completely, this allows bears to step in and take full control of the market.
Usually what happens in a bear market is it starts with stopping out high leverage positions, this is then followed by stops and sentimental levels, and usually by this time the general public starts panic selling. The panic sell of the general public has been done; institutions have been selling consistently since then. This cycle is extremely common in crypto especially
I do believe, however, that we are approaching some type of bottom, it is highly unlikely for Solana to go to $50 or below. The reason is because that would mean Bitcoin will go lower than $45,000 or even lower than $30,000 which is very, very unlikely.
So, the question remains, if you are an investor, what should you do? Well, nobody really knows what will happen in the market and for that reason, it’s not possible to predict, but you can do things like use time as your advantage. If Solana goes back to all-time highs, it will generate more than a 3x return based on its current price. Now, you can’t know where the bottom is, so you’ll have to take a little bit of a risk if you want the best chance at succeeding, this is why systematically buying smaller amounts on a weekly basis will help you average out over the long term and it will negate your risk as much as possible.
Every investor has his own way of planning and executing, but generally making sure you are managing risk will be the best thing for you. If you don’t manage your risk properly, you might not survive long enough to see the bull market again.
Once everything has cooled down, especially around all the heated news of exchanges, then we might start seeing some good potential for a bull market again, just remember than nothing is guaranteed.
Keeping your eyes on Bitcoin could also help your planning for Solana, as Bitcoin usually moves before the smaller coins move, so if Bitcoin is looking promising, Solana might do the same right after.
(Just my opinion, not financial advice)