Solana Price Drops 4% Despite Strong On-Chain Activity

Solana (SOL) has been exhibiting mixed signals recently, with its price experiencing a decline despite sustained on-chain activity. The price of SOL has slipped below a key resistance level at $154, suggesting limited bullish momentum. The current price structure indicates a possible ABC corrective pattern, with the price appearing to be in wave C, which signals a continuation of the short-term downtrend.

Several Fibonacci retracement levels offer potential support for SOL. These levels include $141.26, $138.97, and $137.09. If the price breaks below these levels, it may indicate a deeper correction ahead. Conversely, a clear move above $154 could signal renewed bullish momentum and a shift in short-term sentiment. At the time of writing, Solana trades near $148.17, highlighting the delicate balance between support and resistance levels.

The broader market structure remains unclear, making it challenging for traders to identify high-probability setups. If SOL rallies from the current range, the yellow wave (B) may extend further, keeping the price action within a sideways zone and delaying any clear breakout. Until the $154 level breaks decisively, traders may continue to see range-bound price behavior. Without a strong technical catalyst, price movement may remain muted, and a failure to hold the nearby support zones could signal further downside pressure in the short term.

Despite the price weakness, on-chain data shows stable daily active address counts over the past several weeks. This indicates strong user engagement on the Solana blockchain, even as the token struggles to regain previous highs. The number of unique active addresses has not decreased significantly, suggesting consistent engagement on the platform. This steady user base could provide fundamental support, but market sentiment remains mixed.

Solana's ability to sustain high levels of activity suggests that it continues to attract users and developers, which could bode well for its long-term prospects. The platform has maintained a strong market share in global transaction volume, even outshining big players. This indicates that despite the price slip, there is still significant interest and activity within the Solana ecosystem. The mixed signals from Solana highlight the complex nature of the cryptocurrency market, where price movements do not always align with on-chain activity. While the price decline may be concerning for short-term investors, the sustained activity on the platform suggests that Solana remains a key player in the blockchain space.