- The resistance point for Solana exists around $150 but the support stands near $135.
- Weak leverage demand and on-chain activity limit SOL’s upside.
- An upcoming approval of Solana ETFs might produce a brief market rise.
Solana (SOL) is trading at $138.80, reflecting a 4.23% decline in the last 24 hours. The current market capitalization reaches $70.63 billion and the daily trading volume recorded $5.13 billion after an 11% increase which demonstrates robust market activity. The declining market prices did not deter investors as demonstrated by the rising trading volumes which signal potential market volatility during this short-term period.
Low Leverage Demand Limits SOL’s Upside Potential
Analysts link SOL’s rapid price drop to the memecoin market’s collapse that affected overall network usage throughout various sectors. Liquid staking together with tokenized assets forms a group that includes yield aggregators as well as synthetic perpetuals and NFT marketplaces and AI infrastructure. SOL faces limited growth potential because leveraged traders show no interest in the market. Perpetual SOL future contracts have maintained a negative funding fee structure that short sellers pay for three consecutive days.
The funding rate of -0.01% per 8 hours during this period equals a monthly fee of 0.9% which indicates buy-side traders maintain lower sentiment since SOL prices declined by 52% from its peak. The rumors about a US-approved Solana spot ETF have created market conditions which might lead to a short-term upward movement in SOL value. A few Solana critics claim that network activity is overblown because 95% of payment fees originate from only 1.3% of active participants consisting of Wintermute and MEV bots.
Another reason SOL struggled to reclaim the $180 level is linked to World Liberty Financial, a semi-centralized finance application associated with Donald Trump’s personal investments. This connection has contributed to speculation over the project’s long-term outlook.
Key Indicators Signal Weak Momentum for SOL
According to analyst Ali Solana remains confined within the right-angled ascending broadening pattern which tends to indicate impending price shifts. The support level for SOL exists between $135-$145 yet the resistance begins at $290 . The trading pattern indicates expanding volatility because resistance breaks may start an upward price surge and support breaks may initiate additional price declines.
The MACD (Moving Average Convergence Divergence) indicator remains bearish, with the MACD line below the signal line, indicating weak momentum. Meanwhile, the RSI (Relative Strength Index) at 38.45 suggests SOL is nearing oversold conditions, which could lead to a potential bounce if buying pressure increases.
If support holds, SOL could target $150-$160, while continued selling pressure may push the price toward $120-$125, where buyers could step in for a rebound.
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