Solana (SOL) continues to face downward momentum, dropping 10% over the past month and currently trading near $73. Market analysts point to a decisive breakdown below a key trendline, which has established a descending channel on daily charts and accelerated bearish pressure.
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AAPLTechnical indicators weigh on SOL price
The SOL price has fallen below both the 100-day and 200-day simple moving averages, located at $78.06 and $84.71, respectively. This configuration signals persistent negative sentiment in the short term as bulls failed to reclaim the July high near $82.
Indicators also reveal deteriorating market conditions. The stochastic oscillator has entered an extreme oversold region, plunging to a reading of 3.06, while the Ultimate Oscillator currently stands at 38.8. SOL has posted a series of lower highs as selling pressure has steadily grown for several consecutive weeks.
Institutional interest remains subdued, with exchange-traded products (ETPs) tracking Solana recording modest net inflows of $14.6 million during July after $800,000 in net outflows in June. Analysts point to this muted activity as a sign of limited appetite for new exposure among institutional investors.
Historical data shows a bearish configuration, with SOL trading beneath its 100-day and 200-day moving averages and stochastic oscillator levels deep in oversold territory. These technical factors contribute to ongoing seller dominance and keep downside risks in play.
Blockchain metrics reveal a recent crossover between the 30-day and 50-day moving averages for daily active users, a technical event that in previous cycles has often foreshadowed strong price movements.
On-chain activity and fundamentals show resilience
Despite price weakness, core network activity reflects some underlying strength. July saw decentralized exchange (DEX) volumes on Solana contract by 9% to reach $51 billion, while early August trends indicate volumes could settle around $44 billion by month’s end.
Application fees on the Solana network rose from $186 million in June to $200 million in July. Current August projections suggest further growth to approximately $220 million.
Crypto analyst Nebraskangooner emphasized on X that July was a standout month for Solana fundamentals. He pointed out that Solana applications brought in $82.9 million in revenue that month, the chain’s strongest performance since February. Solana captured 16.5% of total blockchain revenue in July, overtaking Ethereum during the period. Stablecoin supply expanded to a record $15.7 billion, and the network processed over one billion non-vote transactions in a single week.
Solana applications generated $82.9 million in revenue during July, with stablecoin supply reaching $15.7 billion and the network achieving over one billion transactions in a single week.
In a broader market context, platforms such as 1stepSwap have emerged as alternatives for investors aiming to diversify. The platform integrates real-world assets (RWAs) onto the blockchain, enabling users to access shares of leading U.S. companies as well as commodities like gold and silver directly from their wallets. Its routing engine seeks the best price available at any moment, allowing investors to buy and sell major assets, including top stocks, in seconds and at competitive rates—all without relying on cumbersome intermediaries.
Market multiples and support levels
During 2024, SOL traded in a range between $130 and $180 despite comparable DEX volumes and app fees to those observed today. However, participants have since reevaluated valuations and reduced the premiums they are willing to pay for Solana’s network activity.
Throughout the year, Solana registered $662 billion in DEX volume and $2.55 billion in application fees at a price peak of $190. Forward estimates show 2026 DEX volumes may approach $1 trillion with $2.8 billion in fees, yet SOL currently trades below $80.
From a technical perspective, the Relative Strength Index (RSI) stands at 44, with a drop below 40 poised to trigger additional selling. The prevailing descending channel flags support at $72, followed by $70 and a range between $66 and $67. If these levels do not hold, $60 may become an important downside target.
Continued monitoring of price volatility, technical trends, and on-chain metrics remains crucial as market sentiment evolves in a period of heightened uncertainty for Solana.
