Can Bhutan’s Solana-Backed Visa Revive Weak SOL Demand?

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Can Bhutans Solana-Backed Visa Revive Weak SOL Demand？

Solana price has slipped below a recent consolidation range, signaling weakening short-term momentum. SOL had been trading sideways for weeks before breaking lower.

The decline reflects muted investor demand. This cautious sentiment persists even as Solana expands real-world blockchain adoption.

Solana Bhutan Expand Collaboration

Bhutan recently launched the world‘s first Solana-backed visa tailored for digital nomads. The initiative builds on the government’s earlier launch of a gold-backed token, TER, on the Solana blockchain. These developments highlight Solanas expanding role in sovereign-backed digital infrastructure.

Government-level adoption strengthens Solanas credibility as a scalable blockchain platform. However, adoption alone has not yet translated into immediate bullish price momentum for SOL.

Solana Holders Exhibit Concern

On-chain metrics show that SOL holders remain cautious. Realized net profit and loss data indicate investors continue selling at a loss. This pattern reflects fading confidence in a near-term rebound. Market participants appear focused on capital preservation rather than accumulation.

During the past 24 hours, as the broader crypto market declined, realized losses jumped by $68 million to $317 million. Elevated realized losses signal sustained bearish sentiment. Persistent selling pressure reduces recovery strength and reinforces short-term downside risks for the Solana price.

Solana Realized Losses. Source: Glassnode

Bearishness has extended into the derivatives market. Liquidation data shows short positions currently dominate long exposure. Traders appear positioned for further downside. This imbalance suggests that speculative sentiment remains defensive despite ecosystem growth.

The liquidation map reveals $1.15 billion in potential short liquidations if SOL climbs to $89. By comparison, only $242 million in long liquidations would trigger if the price falls to $67. This skew indicates greater pressure on bearish positions during sharp upward moves.

Solana Liquidation Map. Source: CoinglassSOL Price Is Looking At Volatility

Solana price is trading at $76 at the time of writing. Bollinger Bands are converging, signaling an impending volatility squeeze. Such setups often precede sharp price movements. Based on prevailing bearish indicators, downside risk currently appears elevated.

If SOL loses the $73 support level, the next downside target stands near $64. A drop to this zone could trigger long liquidations. Increased forced selling may intensify volatility and deepen short-term losses for holders.

Solana Price Analysis. Source: TradingView

Conversely, a shift in sentiment could support recovery. If bulls regain control, Solana price may reenter consolidation between $78 and $87. Sustained stability within this range would improve structure. A breakout above $89 could trigger $1.15 billion in short liquidations, accelerating upside momentum.