Solana News Today: Solana’s Price Soar Defies Sluggish On-Chain Activity, Raising Big Questions

Solana (SOL) has drawn significant attention as analysts and traders closely monitor its price action, technical formations, and broader ecosystem developments. The cryptocurrency is currently in focus due to a "cup-and-handle" pattern that has validated a breakout above the $160 level. This has reinforced the potential for a continuation of the bullish trend, with price projections suggesting a target of $460 in the near term. Analysts have highlighted that the technical configuration implies a substantial upward movement, especially if the price can maintain its momentum above key resistance levels and confirm the pattern on higher volume [1].

The recent approval of the Alpenglow upgrade has further fueled optimism. With 98.27% of stakers voting in favor, the upgrade is set to replace Solana’s current consensus mechanisms—Proof-of-History and TowerBFT—with two new components: Votor and Rotor. These enhancements are expected to significantly reduce transaction finality from over 12 seconds to just 150 milliseconds, a 100-fold increase in speed. Additionally, Rotor will streamline data transfers between validators, which is expected to benefit high-demand applications such as DeFi and blockchain gaming [2].

Despite these advancements, Solana’s on-chain fundamentals have raised some concerns. Over the last 30 days, the total number of transactions on the network has dropped by 99%, and the number of active addresses has declined by 22%. DeFi activity has also experienced a sharp downturn, with weekly volumes on decentralized exchanges falling by 65% to $10.67 billion. This stark contrast between price appreciation and on-chain activity suggests that speculative enthusiasm, as evidenced by a record $13.68 billion in open interest on derivatives, may be driving the current rally rather than a broad-based increase in network usage [3].

The price action has also aligned with key technical indicators. The Relative Strength Index (RSI) has risen from 49 to 61 since early August, signaling renewed buying momentum. The $210–$250 zone represents the next critical resistance level to break through, with a potential move above $330 opening the door to a price discovery scenario. Analysts project technical targets ranging between $1,030 and $1,057 based on Fibonacci retracements and pattern expectations. However, the price must confirm these levels with strong volume and conviction for the bullish thesis to gain broader market credibility [1].

As Solana prepares for the implementation of the Alpenglow upgrade, the market remains divided between bullish and bearish interpretations. The approval of the upgrade has underscored Solana's commitment to improving network efficiency and scalability, which could attract further institutional and retail interest. Analysts have noted that if fundamentals can align with price expectations, Solana could redefine its position in the crypto ecosystem. However, until on-chain activity rebounds and real-world usage expands, the sustainability of the current rally remains an open question. Traders and investors are advised to monitor key resistance levels and volume dynamics to gauge the strength of the ongoing upward movement [1].

Source:

[1] title1 (https://www.cointribune.com/en/crypto-solana-aims-for-1000-despite-sluggish-activity/)

[2] title2 (https://www.coindesk.com/tech/2025/09/02/solana-set-for-major-overhaul-after-98-votes-to-approve-historic-alpenglow-upgrade)

[3] title3 (https://cointelegraph.com/news/solana-alpenglow-upgrade-clears-governance-vote-implementation)