-
Solana’s price action is currently confined within a bearish wedge pattern, signaling potential downward pressure despite its robust network activity.
-
The cryptocurrency faces critical support between $137 and $140, with repeated resistance near $153 indicating a tightening trading range and diminishing bullish momentum.
-
According to COINOTAG, Solana maintains dominance in blockchain transactions, processing over 100 million daily despite subdued price movements, underscoring strong on-chain demand.
Solana’s price compresses within a bearish wedge while its network dominance continues with over 100M daily transactions, highlighting critical support zones and market pressure.
Bearish Wedge Formation Signals Increasing Price Pressure on Solana
Solana’s price has been consolidating within a well-defined bearish wedge, bounded by descending resistance at approximately $153 and firm support near $137. This narrowing price range reflects a loss of upward momentum, as buyers struggle to sustain levels above $150. The repeated rejections at the $153 mark confirm this level as a significant resistance barrier, limiting upside potential in the near term.
Technical analysis reveals a clear RSI divergence at recent highs, indicating weakening bullish momentum despite attempts to rally. This divergence, coupled with muted trading volume, suggests that sellers are gaining control as the price coils tighter within the wedge. Market participants should monitor the $137–$140 support zone closely, as a decisive breakdown below this range could trigger a further decline toward $127, a previous support level observed in late June.
Momentum Indicators Highlight Diminishing Buyer Strength
Expert analyst Jeremy from COINOTAG emphasizes the significance of the failed bounce from $141, interpreting it as a signal of fading bullish strength. The persistent inability to break above $153 has created a ceiling that has contained price advances for multiple attempts. The Relative Strength Index (RSI) hovering just above 50, combined with bearish divergence, underscores the tightening momentum and the potential for increased selling pressure.
Traders are advised to watch for volume spikes and price action near the wedge boundaries, as these could provide early signals of a breakout or breakdown. Until then, the current structure suggests a cautious approach, with the risk skewed toward downside movement within this technical formation.
Solana’s Network Activity Remains Unmatched Amid Price Stagnation
Despite the constrained price action, Solana continues to lead the blockchain ecosystem in daily transaction volume, consistently surpassing 100 million transactions since early April. This level of activity dwarfs competitors such as Ethereum, BNB Chain, and Polygon, which generally record daily transactions below 20 million.
Data from The Solana Post highlights Solana’s resilience, noting a swift recovery in transaction volume following a dip in June. This rapid rebound reaffirms Solana’s position as the most active blockchain network, driven by sustained on-chain demand and user engagement.
On-Chain Metrics Confirm Strong User Engagement
Visualized through Artemis charts, Solana’s transaction volume (represented by the green line) consistently outpaces other major blockchains, with frequent spikes indicating robust user activity. In contrast, BNB Chain exhibits a slower growth curve, and Ethereum’s transaction levels remain relatively flat, further emphasizing Solana’s dominance.
This persistent network strength suggests that while price momentum is currently subdued, the underlying demand for Solana’s blockchain services remains vigorous. Should this on-chain demand translate into renewed buying interest, the existing bearish wedge could be breached, potentially leading to a significant price movement.
Conclusion
Solana’s price is currently navigating a critical juncture within a bearish wedge, facing strong resistance near $153 and key support between $137 and $140. Technical indicators point to weakening bullish momentum, with a potential downside risk if support fails. However, Solana’s unparalleled network activity, consistently exceeding 100 million daily transactions, highlights robust on-chain demand that could catalyze future price recovery. Market participants should remain vigilant for breakout signals while recognizing the fundamental strength underpinning Solana’s ecosystem.
