Solana (SOL) Faces Headwinds at $134: Bull Market in Question Amid Declining Network Activity and Key Resistance
Solana (SOL) is currently trading around $134, marking a nearly 4% decline in the past 24 hours, mirroring a broader correction in the cryptocurrency market. This price action comes after SOL faced a significant 8% rejection at the $147 mark on March 25th and has struggled to consistently break above the crucial $150 resistance level for the past three weeks.
This persistent inability to flip $150 into support has led many traders to question whether the once-vigorous bull market for Solana SOL/USD, fueled by the memecoin frenzy and the rise of AI-related crypto projects, has reached its end.
Bullish Catalysts Fail to Ignite Sustained Rally as Network Activity Declines
Solana’s price action is still subdued even with probable long-term catalysts including the likely legalization of a Solana spot ETF in the US and the increasing acceptance of tokenized real-world assets (RWA) on its network, including stablecoins and money market funds. Optimistic voices like co-founder of TBH and Gas startups Nikita Bier note Solana’s strong basis for mobile-first decentralized apps (DApps) and the flood of fresh users brought by the memecoin surge. Still, these basic attributes haven’t yet shown consistent increasing price momentum.
Investor mood has been further lowered by the latest poor disclosure on the US government’s digital asset hoard, which specifically named Bitcoin but ignored altcoins such as Solana. Solana’s on-chain activity—more especially, DApp sales and chain fees—has suffered a notable drop even while its Total Value Locked (TVL) across several DeFi sectors, including liquid staking and lending, is rising.
From $23.7 million in the two weeks preceding March 10th to $12 million in the next two weeks, DApp revenues dropped. In the same times, base layer fees fell from $6.6 million to $3.6 million as well. The demand and attraction of the SOL token directly depend on this drop in network utilization.
Solana Loses Ground in DEX Volume as Competition Intensifies
Furthermore raising questions is Solana’s declining dominance among Decentralized Exchange (DEX) volumes. DefiLlama’s data shows that even having a smaller TVL, BNB Chain has exceeded Solana in DEX volume. This change emphasizes growing competitiveness and a possible loss of market share for Solana in a fundamental DeFi statistic. Although trading activity has surged on sites like Hyperliquid and Pendle, Solana’s general DEX volume has dropped greatly since its January 2025 peak.
Fascinatingly, PumpSwap, a new automated market maker (AMM) for pump.fun token migrations, has rapidly climbed to become the second-largest AMM on Solana by volume, highlighting the ongoing, if perhaps speculative, interest in the Solana ecosystem despite the general drop in on-chain activity.
SOL/USD Technical Analysis Reveals Bearish Patterns and Key Support Levels
Technically, several bearish formations on Solana’s price charts indicate the possibility for more fall.
- SOL is trading everyday in a bear flag pattern. Usually indicating a continuation of the downturn, this pattern develops following a severe downslide and a period of consolidation. Right now, this flag’s lower border falls about $132. With a bear flag predicted around $55, a breach below this level could set off a major price fall with a negative goal for the bear flag calculated about 60% decline from current levels.
- Solana created a death cross pattern on February 25th which the 50-day moving average crossed below the 200-day moving average. This is a generally acknowledged bearish indication pointing a possible long-term declining trend.
- Separately, a bearish flag pattern has also been developing over the past two weeks, therefore augmenting the pessimistic viewpoint. Tested several times, a break below the crucial support level at $120 might result in a target of $100, a 30% decrease from present levels.
Solana Price Prediction: Analyst Opinions Diverge on Solana’s Future Trajectory
Some analysts remain upbeat despite the alarming technical signals. Popular crypto expert Jelle thinks Solana can bounce back if TVL and fees of its network show positive trend, particularly considering its rivals. Trader Flash advises that a confirmation of a declining wedge formation on the daily timescale can cause a notable surge towards $265.
But given the present price action and deteriorating on-chain statistics, the general opinion is one of caution. The struggle to clear the $150 resistance and the development of negative trading signals point to Solana maybe experiencing more downward pressure in the short to medium term should important support levels fall short.
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