TLDR
- Solana tests make-or-break $217 support after falling from $230
- Network transactions crashed 50% from 125 million to 64 million daily since July 24
- Price climbs while network activity drops, creating negative divergence pattern
- Voting transaction changes may explain decline, but DeFi and NFT activity also dropped
- Next resistance levels sit at $226-$228 and $236-$238 if support holds
Solana faces a critical moment as it tests the $217 support level. The token has pulled back from recent highs near $230, putting pressure on this key technical threshold.
Market analyst Ali identified $217 as a pivotal price point for SOL’s near-term direction. Technical patterns suggest this level could act as a foundation for recovery. A W-shaped bounce pattern may emerge if buyers step in to defend the zone.
The current setup shows Solana at a crossroads. The $217 level represents the primary defense line for bulls hoping to maintain upward momentum. A successful hold could trigger a move back toward higher prices.
Resistance levels await above current prices. The $226-$228 zone has rejected multiple rally attempts in recent sessions. Beyond that, the $236-$238 area stands as the next major target for bulls.
Sharp Drop in Network Transactions
Onchain data paints a troubling picture for Solana’s rally. Daily transaction volume has collapsed from roughly 125 million on July 24, 2025, to approximately 64 million transactions today.
This 50% decline creates what analysts call a negative divergence. SOL’s price has climbed during this period while network activity has steadily decreased.
CryptoQuant analyst Crypto Onchain highlighted this divergence as a potential warning signal. Typically, sustainable price rallies should coincide with growing network usage. Instead, Solana’s rally appears driven more by speculation than organic demand.
The drop in activity includes DeFi transactions, NFT trades, and user transfers. These metrics usually indicate real ecosystem health and user engagement.
Understanding the Transaction Decline
Context matters when analyzing Solana’s transaction data. Between 80-90% of Solana’s historical activity consists of voting transactions. These votes are necessary for network consensus and security.
Changes to how the network processes votes could explain part of the decline. This would mean user activity hasn’t dropped as dramatically as the raw numbers suggest.
However, if DeFi and NFT activity are also falling, the situation becomes more concerning. Reduced interaction with decentralized applications would indicate weakening fundamentals beneath the price rally.
Bulls maintain that structural network changes explain the data. They argue user engagement remains strong despite lower transaction counts. Bears counter that the divergence signals speculative overheating.
What Happens Next
The coming trading sessions will prove crucial for Solana. A successful defense of $217 support could spark a rally back toward $226. Breaking above that level opens the path to $236 and potentially higher.
Failure to hold $217 would likely trigger deeper selling. The next support zone sits near $210, where buyers might attempt another stand.
Several factors influence Solana’s price movement. Competition among layer-1 blockchains continues to intensify. Growth in Solana’s DeFi and NFT ecosystems provides fundamental support. Bitcoin’s performance and overall crypto market sentiment also play major roles.
Liquidity flows between Bitcoin and alternative cryptocurrencies can create sudden moves in SOL. Traders watch these rotations closely for timing entries and exits.
The divergence between price and network activity raises questions about rally sustainability. If user-driven transactions continue declining, Solana may face increased correction pressure in the weeks ahead.
