Solana prices continue to trend higher overall, but near-term risks have increased. SOL has formed an ascending wedge since the beginning of the month, and this pattern often precedes a pullback.
Despite active investor participation, this setup signals a potential downside that could undo recent bullish efforts.
Solana holders counter each other
On-chain activity shows strong growth in the network. Since the beginning of the month, the number of addresses conducting transactions on Solana has skyrocketed. At its peak, more than 8 million new addresses joined the network within 24 hours.
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This increase indicates a huge demand for SOL. New addresses typically bring in new capital, increasing liquidity and network utilization. Such growth reflects the growing attractiveness of Solana’s ecosystem, driven by DeFi activities, meme coins, and high-throughput applications that attract new participants.
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Despite growing network penetration, macro momentum tells a different story. Exchange position change data shows that existing holders have more influence over price movements. Buying pressure from long-term participants eased, offsetting the impact of new capital inflows.
As the buying momentum weakens, selling pressure is starting to prevail. This change suggests that existing SOL holders are reducing their exposure or preparing to sell. When traditional supply exceeds new demand, prices often continue to fall and the current structure becomes more likely to collapse.
SOL price is under consideration for revision
Solana’s price is trading around $144 at the time of writing, staying within an ascending wedge that has formed over the past few days. This bearish continuation pattern predicts a 9.5% downside potential, with a downside target near $129 if the structure resolves lower.
The expected decline is consistent with indicators of weakening momentum. If the breakdown is confirmed, SOL is likely to head toward $136 initially. A loss of this support would expose the $130 level where buyers may seek to stabilize the price amid widespread market caution.
Still, a bearish scenario is not guaranteed. If investor sentiment improves and selling pressure eases, SOL could rebound from the wedge’s lower trendline. A move above $146 would signal strength once again. Further gains could take Solana closer to $151, invalidating the bearish outlook.
