Solana's Price Drops 1.67% Amid 44% DEX Volume Surge

Solana's latest price was $145.50, down 1.675% in the last 24 hours. This recent price movement comes at a time when the network is experiencing renewed momentum, with decentralized exchange (DEX) volume surging to $21 billion over the last seven days, marking a 44% increase. This surge in activity has kept Solana at the top of the leaderboard for transaction volume.

The Solana ecosystem has seen explosive growth in the past year, with protocols like Pump generating over $75 million in fees over the past month. Heavyweight protocols such as Raydium, Meteora, Jupiter, and Jito continue to generate millions in monthly revenue, contributing to the overall strength and vibrancy of the Solana network.

Despite the recent surge in activity, momentum indicators such as the Relative Strength Index (RSI) suggest that bullish strength may be cooling. The RSI has dropped to 50.61 after hitting 70.52 just a few days prior, indicating a slowdown in price momentum. This decline mirrors the broader market sentiment, where buying pressure has started to wane.

Solana's EMA lines still signal a bullish setup, with short-term averages above long-term ones. However, the narrowing gap between these lines reflects a loss of momentum. The network's price is currently hovering near a key support level, with traders closely monitoring for any signs of a breakout or breakdown.

If the support level at $145.59 holds, Solana could potentially bounce back and retest resistance around $157. A clear breakout above this zone would likely trigger a push toward $180, reviving the bullish trend. Conversely, if the support breaks, the price could slip toward $133.82, and if selling pressure intensifies, a deeper move to $123.46 could be in play.

Solana is currently forming a textbook-perfect cup and handle pattern, a classic technical setup frequently regarded as a bullish continuation pattern. This pattern, which resembles a teacup with a rounded bottom followed by slight downward consolidation, could pave the way for strong upward momentum if validated.

With technical signals aligning and strong interest in the Solana ecosystem, traders and investors are closely watching SOL's next move. The formation of this pattern has gained fresh relevance with recent strong performance, positioning Solana as one of the standout gainers among major altcoins.

However, broader economic uncertainty casts a shadow over the market. As the US-China trade war starts to hit consumers and analysts price in a summer recession, sentiment could sour quickly. Solana has shown particular vulnerability to macro turbulence, shedding more than 65% since the US tariff war started just four months ago.

Popular analyst Ali Martinez brought attention to the cup and handle pattern after a decisive rebound off the lower support of the descending channel forming the handle. The month’s reversal has proven the pattern’s integrity and set the Solana price on the breakout path, approaching its upper resistance.

A successful breakout targets highs around $450, marking a potential 200% gain from current prices, though Martinez alluded to potential 4-figure gains. The setup appears increasingly plausible as technical indicators skew bullish, with the Relative Strength Index (RSI) trending upward and the MACD line closing in on a bullish golden cross.

However, Solana’s recent push has been rejected at the $160 resistance level—a key barrier that must be overcome to confirm a breakout. Overcoming it could trigger a rally towards the next key resistance level at $190. Failure may trigger a correction, eying the next significant support around $125—a cause for concern with looming economic uncertainty.