Solana posts unusual bullish signal even after losing 49% of its market cap

Solana’s market value has dropped by 49% from its September 17 local high, yet the network’s ecosystem is seeing a distinctive bullish divergence, according to Santiment Feed’s daily active addresses chart.

SOL has witnessed a 32% decline in the last 30 days, in a month where the broader cryptocurrency market’s bloodbath has pushed several top ranking coins down to lows that haven’t been touched since the first half of the year.

At the time of reporting, Solana was trading at $127.5 after briefly recovering from a weekly low of $122 by 1.46%, with a slow but steady recovery in its market capitalization of $71.34 billion.

Despite its price woes and no sign of a positive price recovery, Santiment’s analysis stated that investors are finding their way back to transacting in the blockchain, which could boost its value in the coming weeks.

Solana network activity growing after months of dips

According to Santiment’s chart shared on X, the number of active addresses measured as a 7-day moving average over the past month rose from 3.45 million on October 20 to 3.65 million on November 20, a month-on-month increase of about 200,000 addresses, or 5.8%.

📊 Solana's market value has now fallen -49% from its local top back on September 17th. However, there has been a unique bullish divergence with crypto's #7 market cap. The amount of interacting addresses are rising, and new $SOL wallet creation is trending up.

🔖 Follow the… pic.twitter.com/qHajp1dlV8

— Santiment (@santimentfeed) November 22, 2025

The first week, from October 20 to 27, saw active addresses surge from 3.45 million to approximately 3.60 million, a 4.3% gain as network activity accelerated late in the month. An early November week of selloffs brought a brief pullback, with addresses dipping to around 3.52 million on November 2, a 2.2% downtick from the late-October high.

Between November 2 and 5, active addresses climbed back again by 1.7% from 3.52 million to 3.58 million, before accelerating to 3.70 million by November 7. This was the strongest short-term expansion of the month, hailing from a weekly gain of 5.1%.

November 7 onwards saw activity stabilize in the middle of 3.65 to 3.72 million, before active addresses peaked near 3.72 million a week later, then slightly consolidating to 3.65 million on November 20. Despite this cooling, the overall monthly trend is clearly upwards compared to the period between June and late September.

On the institutional interest in Solana-focused products front, Bitwise’s Solana Staking ETF surpassed $500 million in assets under management in just 18 days after counting inflows for 18 consecutive days, Cryptopolitan reported.

Yet, Solana is still trying to flip its 2-week support turned resistance level at $130, where sellers appear to be thwarting any charges from bulls since Friday’s US market trading close.

Traders see potential for a rebound toward $140 if buyers continue adding to their positions, though a dip into the $120 liquidity area that was once touched yesterday cannot be ruled out before a recovery materializes.

Bitcoin market sentiment weakens, index flashes fear

Santiment also shed light on Bitcoin’s current bearish market situation, saying that social media sentiment has reached its lowest levels since December 11, 2023. The analytics platform cited data from X, Reddit, Telegram, and other social chatter showing panic selling, with retail investors capitulating at a level not observed in two years.

📊 Bitcoin's sentiment across social media has officially dipped to its lowest point since December 11, 2023. According to bullish vs. bearish comments on X, Reddit, Telegram, and others, retail is capitulating and panic selling at a significant level we haven't seen in 2 years. pic.twitter.com/4Hi0iTgsHO

— Santiment (@santimentfeed) November 21, 2025

Per CoinGlass’ latest updates, over $700 million worth of crypto was lost to liquidations in the derivatives market, with bitcoin carrying the largest share of the bitter cake at $300 million.

CryptoQuant analyst Arab Chain mentioned the NUPL (Net Unrealized Profit/Loss) on Thursday fell to 0.35, its lowest reading since 2023. Much different from the similar reading recorded two years ago, which coincided with a Bitcoin rally, the current reading spells a diminished positive sentiment caused by heavy price declines of more than 30% in just two months.

“The index has declined significantly after approaching 1 recently, indicating that investors remain in a profit-driven, optimistic zone. This level precedes periods of slowdown or correction, making the market sensitive to any changes in incoming flows, which have seen a rise in recent days,” Arab Chain explained.

Moreover, realized losses for Bitcoin have surged to levels reminiscent of the FTX collapse, and short-term holders are causing the bulk of the capitulation for taking profits fast, according to Glassnode.