Solana’s price has dropped to $183.81 after breaking key support at $182.31, signaling potential further declines to $178.88. Despite this Solana price weakness, Grayscale highlights the network’s undervaluation amid robust on-chain activity and $400 million in monthly fees.
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Solana price breaks below $182.31 support, targeting next levels at $178.88, $176.76, and $167.79.
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Grayscale report emphasizes Solana’s undervaluation with strong on-chain growth and over 500 active apps.
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The network generates $400 million in monthly transaction fees and $1.2 trillion in DeFi volume this year, per Grayscale data.
Discover why Solana price is dipping below $184 despite strong fundamentals like high fees and developer activity. Grayscale calls it undervalued—explore the analysis and key supports now.
What Is the Current Solana Price and What Caused the Recent Drop?
Solana price currently stands at $183.81, having slipped below the critical $184 level after a technical pullback from a nine-wave surge. This decline follows the breakdown of key support at $182.31, driven by bearish momentum as indicated by the Relative Strength Index (RSI) at 40.52, which shows no oversold conditions yet. Veteran trader Matthew Dixon views this as a corrective pullback offering potential buying opportunities, but failure to hold lower supports could lead to further drops toward $178.88 and below.
Is Solana Undervalued Despite the Price Pullback?
Grayscale Research affirms that Solana remains undervalued, with its market capitalization not fully capturing the blockchain’s impressive performance and real-world usage. The report details Solana’s leadership in active users, transaction volumes, and network fees, generating over $400 million monthly— a testament to surging demand for its services. Nine public companies now hold approximately 2.5% of the total SOL supply, signaling growing institutional confidence. Solana’s ecosystem boasts over 500 decentralized applications (dApps) in DeFi, gaming, and infrastructure, outpacing other Layer-1 blockchains in on-chain activity. Platforms like Raydium and Jupiter have driven more than $1.2 trillion in trading volume this year, while low fees and high-speed transactions attract over 1,000 full-time developers, second only to Ethereum. This robust growth underscores Solana’s potential for long-term appreciation, even amid short-term price volatility.
Negativity is pervading the market right now but #SOL shown here indicates that this is JUST a CORRECTIVE pullback and that we have impulsive counts from the two lows here of 5 waves and 9 waves with corrective pullbacks. Therefore great risk reward for going long imo pic.twitter.com/8c5VpEI2Yx
— Matthew Dixon – Veteran Financial Trader (@mdtrade) October 21, 2025
Solana’s technical indicators, including the dropping RSI, suggest continued bearish pressure in the near term. If the price retests the $176–$172 range without rebounding, it could dip below $170, opening paths to deeper Fibonacci extension levels like $167.79. However, the network’s fundamentals provide a counterbalance, with steady developer engagement and institutional inflows mitigating downside risks.
Beyond pricing dynamics, Solana’s appeal lies in its scalability. Transactions process in seconds at fractions of a cent, enabling seamless adoption across sectors. This efficiency has fueled exponential growth: daily active users often exceed those on competing networks, and monthly fees reflect genuine economic activity rather than speculative hype. Grayscale’s analysis, drawing from on-chain metrics, positions Solana as a “crypto’s financial bazaar,” bustling with innovation and utility.
Institutional adoption further bolsters the case. The 2.5% SOL holdings by public firms represent strategic bets on Solana’s infrastructure. As more enterprises integrate blockchain solutions, Solana’s high throughput—handling thousands of transactions per second—positions it advantageously against slower alternatives. Developer metrics from sources like Electric Capital confirm over 1,000 full-time contributors, fostering a vibrant ecosystem that sustains value creation.
Frequently Asked Questions
What Are the Key Support Levels for Solana Price Right Now?
Solana price has key supports at $178.88, $176.76, and $167.79, based on Fibonacci extensions from recent surges. Holding above $172 could stabilize the asset, but a break below might lead to $170. Traders like Matthew Dixon see this as a buying zone amid the corrective pullback, per technical analysis.
Why Does Grayscale Consider Solana Undervalued?
Grayscale views Solana as undervalued because its market cap underrepresents the network’s strong metrics, including over $400 million in monthly fees and $1.2 trillion in DeFi volume. With 500+ dApps and 1,000 developers driving activity, the blockchain’s real usage far exceeds its current valuation, making it attractive for long-term investors.
Key Takeaways
- Solana Price Volatility: Current trading at $183.81 reflects a technical pullback, but supports at $178.88 offer potential entry points for bullish traders.
- Strong Fundamentals: Grayscale reports highlight $400 million monthly fees and institutional holdings of 2.5% SOL supply as signs of undervaluation.
- Ecosystem Growth: Over 500 dApps and $1.2 trillion DeFi volume underscore Solana’s leadership in on-chain activity—monitor developer trends for future upside.
Conclusion
Solana price faces short-term pressure after breaking $182.31 support, yet Grayscale’s assessment of its undervaluation amid booming on-chain activity and institutional interest paints a resilient picture. With low fees, fast speeds, and a thriving developer community, Solana remains a cornerstone of the crypto ecosystem. Investors should watch key levels closely, as this pullback could precede renewed growth—stay informed on network developments for strategic positioning.
