Solana (SOL) is approaching a critical technical level after four straight weeks of losses, even as activity on its blockchain accelerates sharply during the broader crypto downturn. The token has slipped to around $93, marking its lowest price since early 2024 and nearly 70% below its January 2025 high of $295. The steady decline has pushed Solana into a classic head-and-shoulders formation on the weekly chart a pattern many traders view as a warning sign of further downside if support breaks.
Price is now hovering near the neckline of that structure. A decisive move lower could open the door to the next major support around $70, while a rebound above $115 would invalidate the bearish setup and ease selling pressure. For now, momentum remains tilted toward sellers as the broader crypto market continues to struggle.
What makes Solana’s recent weakness notable, however, is that it’s happening alongside steady institutional demand and rapidly improving network fundamentals.
Spot Solana exchange-traded funds have continued to attract fresh capital despite the falling price. Recent data shows that ETFs added $6.8 million in inflows this month, pushing cumulative inflows above $877 million. These funds now hold assets equivalent to roughly 1.5% of Solana’s total market capitalization, suggesting that some larger investors are still building positions rather than exiting.
At the same time, on-chain activity has accelerated significantly. Transaction counts on the network have jumped over the past month, reaching 2.48 billion, while total addresses climbed to more than 105 million. Network fees have also surged, nearly doubling to $26 million, a figure that now rivals activity seen on Ethereum. Much of this growth has been driven by stablecoin usage, with Solana processing roughly $491 billion in stablecoin volume and hundreds of millions of transfers over the same period.
These metrics suggest the blockchain itself is seeing heavier real-world usage, particularly for low-cost payments and high-frequency transfers, even as the token price trends lower.
The result is a rare disconnect between price action and fundamentals. Technically, Solana looks vulnerable, with chart patterns pointing to further downside risk. Fundamentally, the network appears to be expanding, with rising transactions, users, and institutional participation.
For traders, the next move likely depends on whether the current support holds. A breakdown could accelerate losses, but continued growth in usage and ETF demand may eventually provide a base for stabilization once broader market sentiment improves.
For now, Solana sits at a crossroads caught between a bearish chart and strengthening network activity, with the market deciding which signal matters more.
