Solana’s Uptrend Holds Strong, But Cracks Are Forming

Solana’s price has maintained a strong uptrend for nearly four months, placing the altcoin among the best-performing assets in the current market cycle. 

The recent surge brought SOL close to breaking the $250 mark before shifting sentiment and reduced investor participation halted its momentum. The lack of sustained support from holders now threatens to derail the rally.

Solana Holders Pull Back

Investor activity on the Solana network has slowed significantly over the past few weeks. The number of active addresses has dropped to a 13-month low, suggesting reduced engagement and on-chain participation. This decline signals waning confidence among retail traders, many of whom have chosen to hold rather than transact amid uncertain conditions.

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A shrinking user base often translates into reduced network utility, which can weigh heavily on price stability. Solana risks losing the fundamental support needed to maintain its rally without consistent transaction volume or user-driven demand. 

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On the macro scale, Solana’s technical structure remains cautiously optimistic despite emerging short-term concerns. The Chaikin Money Flow (CMF) indicator, which tracks capital inflows and outflows, has slipped below the zero line—an early warning of rising investor withdrawals. This suggests that traders are moving liquidity away from SOL for now.

However, the CMF still maintains a broader upward trajectory, hinting at underlying strength in Solana’s long-term trend. If this macro uptrend holds as support, it could stabilize price action and prevent deeper losses. 

SOL Price May Fall

At press time, Solana trades at $222, hovering just above the $221 support level. SOL has been on a consistent upward trend for the past three and a half months, making this level crucial for maintaining market structure.

Given current conditions, a dip to $213 seems likely if selling pressure increases. Stronger outflows could accelerate losses, pushing SOL to test the $200 level and breaking its multi-month uptrend.

Conversely, if Solana rebounds from $221 and market sentiment improves, it could climb toward $232 and beyond. Such a move would invalidate the bearish outlook and potentially reignite the rally.