Solana: On-Chain Activity Increases, But SOL May Continue to Decline – Here's Why

Solana (SOL) has recently declined towards the $100 support zone after struggling to surpass the $150 resistance level. Analysts are observing potential bearish trends, yet there are arguments for a possible rally. The following article delves into the current market sentiment and traders' actions regarding SOL.

Key Takeaways

Solana (SOL) has fallen toward the $100 support area after failing to break the $150 resistance since mid-November.
The weekly chart indicates a bearish trend, with SOL likely to drop below April 2025's swing low of $95.
Despite claims of an imminent rally, SOL must reclaim the $150 resistance for bullish momentum.
Increased on-chain activity could enhance Solana's investment appeal, turning speculation into economic value.
Traders are advised to sell on short-term bounces, with notable supply zones observed around $120 and $140.

Solana: On-chain activity rises, but SOL isn’t done falling - Here's why

Current Market Overview

Solana (SOL) has recently dipped toward the $100 support zone, especially after its unsuccessful attempts to break through the $150 supply zone since mid-November. The overall market's recent sell-off has negatively impacted this altcoin, leading to further declines.

Solana 1-week Chart Source: SOL/USDT on TradingView

Bearish Market Sentiment

The weekly chart suggests a bearish bias for SOL. Following a strong performance at the end of 2024, the altcoin exhibited a bearish structure break in April 2025. The rejection observed in September 2025 at the 78.6% retracement level of $252.9 confirmed that the prior structure break was indicative of a real trend shift rather than just a liquidity anomaly. As things stand, it appears quite possible that SOL may fall below the swing low of $95 recorded in April 2025.

Optimistic Perspectives on Solana

Recently, discussions regarding a potential Solana upturn toward $300 emerged, though professionals believe this could happen only if bulls reclaim the critical supply zone at $150. Further reports from prediction platforms like Kalshi have shown rather pessimistic views, especially regarding SOL reaching ambitious goals such as $450. However, for long-term investors, a price target of $1,000 seems plausible. Furthermore, VanEck has projected an optimistic scenario where SOL could reach $3,200 by 2029.

Notably, recent news surrounding an increase in on-chain activity is encouraging. This growth can potentially enhance SOL’s appeal, converting speculative interest into meaningful economic value.

Trader Recommendations – Sell on Bounces

Solana 1-day Chart Source: SOL/USDT on TradingView

The daily chart indicates a bearish swing structure change, denoted in orange. Local supply zones are identified around the $120 and $140 levels. Swing traders are advised to look for a bounce towards $120 to execute short positions.

The Relative Strength Index (RSI) indicates oversold conditions with a reading of 22, coupled with a surge in selling volume pushing the On-Balance Volume (OBV) to multi-month lows. The next long-term support levels are noted at $64 and $47.9. In the upcoming weeks, temporary bullish reactions might appear at $95 and $78. However, a decline in Bitcoin (BTC) below $74,000 could strengthen this bearish outlook.

Final Thoughts

Disclaimer: The information presented in this article does not constitute financial, investment, trading, or any other type of advice and reflects solely the author's opinions.