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Solana Q4 Price Crash Raises Concerns for 2026 Recovery

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Solana (SOL) has faced a turbulent close to 2025, trading below $150 over the last 30 days. The coin has struggled to break key resistance levels, posting its worst quarterly performance of the year. According to Cryptorank, SOL dropped 39.1% in Q4, underperforming its Q1 decline of 34.1% and disappointing bulls who expected the gains from Q2 and Q3 to continue.

The asset showed strong recoveries earlier in the year. In Q2, Solana rebounded from a 34.1% decline to close the quarter up 24.2%, followed by a Q3 surge of 34.9%, marking its highest quarterly growth of 2025. The Q4 downturn, however, reversed this momentum and left investors cautious.

Monthly Performance Highlights

The downturn began in October, when Solana posted a 10.3% monthly decline despite a 12.5% average growth expectation. November intensified the losses, with SOL plunging 28.3% against anticipated gains of 6.84%. December continued the negative trend, dipping below its monthly average of -4.29% and closing the month down 4.82%.

As of this writing, Solana trades at $127.02, up 2.21% in the past 24 hours. The coin climbed from a low of $124.02 to a high of $127.81, with trading volumes spiking 40.52% to $2.87 billion. This shows that some capital rotation from Ethereum is supporting short-term bullish potential. Solana has also reclaimed its seven-day Simple Moving Average (SMA), with its Relative Strength Index (RSI) holding neutral at 41.42.

Institutional Interest and Revenue Milestones

Despite the quarterly losses, Solana’s institutional appeal remains strong. Its exchange-traded fund (ETF) recorded steady inflows over seven days in mid December, totaling nearly $700 million. Remarkably, Solana is approaching a revenue milestone that could see it surpass Ethereum for yearly earnings. Founder Anatoly Yakovenko predicts SOL’s 2025 revenue could reach $1.4 billion, compared to Ethereum’s $522 million.

The data indicates that even major cryptocurrencies like Ethereum faced challenges, but Solana’s growing institutional backing offers a hopeful outlook. Investors now look to 2026 with cautious optimism, hoping SOL avoids a repeat of its disappointing early-year performance.

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