Solana (SOL) is facing pressure due to urgent validator updates, an increase in short positions, and decreased social activity. However, despite the asset’s price decline, the overall data suggest that the Solana ecosystem is still attracting new users.
As of February 19, 2026, according to Santiment, the growth of the wallet has consistently increased over the past five months while the value of SOL is decreasing. This is accompanied by an increase in the amount of short positions, which is likely to cause a short squeeze.
The tracking of new wallet addresses indicates that Solana continues to add new participants, despite its price decline in the latter half of 2025. This indicates that there remains interest in the network, both from new and old participants.
Historically, rising network activity during a decline in prices may be a sign of early accumulation or structural adoption, which could lay the foundation for a subsequent rally once market sentiment improves.
Solana Shorts Surge Sparks Market Moves
From the analysis of funding rates provided by SOL, it is evident that there was a sharp increase in short positions due to bearishness in the market. The negative funding rates in the past have led to drawdowns that have triggered short squeezes in the market, leading to price increases.
While this is by no means a guarantee, the data as it stands now indicates that a crowded short position could increase volatility as buyers return to the market, providing a strategic opportunity to risk-aware investors.
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Solana Social Dominance Drops
The social dominance of Solana has declined since its peak in September 2025. Less chatter on Twitter/X, Reddit, and crypto discussion boards suggests that retail interest remains subdued, which often precedes price bottoms rather than price tops.
The rising network growth, high concentration of shorts, and low social activity create a market setup that may be conducive to contrarian action.
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