Solana’s native token (SOL) traded near $84 as of Friday morning, after rebounding from a support level of $81.40. The recovery follows a broader market bounce led by Bitcoin and Ethereum, but SOL continues to face significant selling pressure below the key $85 resistance zone.
"On-chain data tells a weaker story," said a researcher at Blockonomi, citing data from the analytics platform Artemis. "Solana’s transaction volume has declined for nine consecutive weeks. It now sits 32% below the peak of 959 million transactions seen during the week ending February 8."
The asset has underperformed its large-cap peers, gaining just 2.8% in April while Bitcoin and Ethereum posted gains of 14% and 10%, respectively. Year-to-date, SOL is down 33%, making it the weakest performer among the top five cryptocurrencies by market capitalization. Trading volume last week of $22 billion was roughly half the levels seen during its 2025 bull cycle.
A technical pattern on the weekly Relative Strength Index (RSI) mirrors a formation from November 2022, which preceded a price drop before a major rally. If this historical precedent holds, some analysts project SOL could fall toward the low-to-mid $50s before resuming a long-term uptrend. Immediate support lies at $82.50 and $81.40, while a break above $87 is needed to target further upside.
The decline in Solana's price is accompanied by deteriorating on-chain fundamentals. Blockchain data shows transaction activity has contracted for nine consecutive weeks. Trading activity has also diminished, with recent weekly volumes at just 20% of historical peaks, indicating waning interest from traders. This lack of participation suggests a fragile support base for the current price level.
Broader economic factors are also weighing on altcoins like Solana. The latest PCE Price Index data showed a rise in inflation to 3.5%, reducing expectations for Federal Reserve rate cuts this year. In this risk-averse environment, capital has favored Bitcoin and Ethereum, leaving less liquidity for other assets. For two months, SOL has been locked in a consolidation channel between $77 and $90. After six failed attempts to break above $90, the path of least resistance may point to a retest of lower support levels before buyers regain control.
This article is for informational purposes only and does not constitute investment advice.
