Solana Must Continuously Iterate and Update, Staying Practical to Survive

Solana (SOL) has seen a surge in network activity, with more than 8 million new addresses joining the network within a single 24-hour period. This sharp increase in on-chain activity reflects strong investor participation and growing demand for SOL. Despite this, near-term risks are building as the price forms an ascending wedge, often a precursor to a pullback.

The growth in Solana's user base brings fresh capital and boosts liquidity, supporting network usage. This has been driven by DeFi activity, memecoins, and high-throughput applications attracting new participants. However, macro momentum shows that existing holders are now exerting stronger influence on price action, with weaker buying pressure from long-term participants. This shift suggests that selling pressure may dominate.

Solana's price currently trades near $144, moving within an ascending wedge formed over recent days. This bearish continuation pattern projects a potential 9.5% decline, placing the downside target near $129 if the structure resolves lower. A confirmed breakdown would likely push SOL toward $136 initially. Losing that support could expose the $130 level, where buyers may attempt to stabilize the price amid broader market caution.

Why Did This Happen?

The rise in new addresses has brought fresh capital to Solana, but legacy supply is beginning to outweigh new demand. This imbalance increases the probability of a breakdown in the current structure. On-chain data suggests that established SOL holders are reducing exposure or preparing to sell. When this happens, price weakness often follows.

Exchange position change data indicates that long-term participants have weakened in their buying pressure, which is now being offset by new capital inflows. As momentum fades, the potential for selling pressure to dominate becomes more pronounced.

Solana's price continues to trend higher, but the pattern suggests a potential dip that could undermine recent bullish efforts. The ascending wedge is a bearish formation, and if the price breaks down from it, a 9.5% correction could follow. This aligns with weakening momentum indicators and suggests that the market is cautious.

Despite the bearish scenario, the outcome is not guaranteed. If investor sentiment improves and selling pressure eases, Solana could rebound from the wedge's lower trend line. A move above $146 would signal renewed strength. Further upside could carry Solana toward $151, invalidating the bearish outlook.

What Are Analysts Watching

Analysts are monitoring on-chain metrics closely to determine whether the trend in Solana's price will continue or if a correction is imminent. The number of new addresses joining the network is a positive sign, but it is being weighed against the behavior of existing holders. If long-term participants begin to offload their holdings, the price could face further downward pressure.

The technical outlook for Solana includes the Relative Strength Index (RSI), which has risen to 68 on the daily chart. This signals a buildup of bullish momentum. The Moving Average Convergence Divergence (MACD) indicator remains above the signal line, prompting investors to lean more into risk for a higher reward ratio if SOL extends the uptrend above a falling wedge pattern.

Overall, Solana's ability to continuously iterate and update will be crucial to its survival. With rising on-chain activity and strong price momentum, Solana remains a leading Layer-1 network. However, the conversation around 2026 is shifting toward utility-driven solutions like Remittix, a PayFi platform focused on real-world payments.