Solana’s network activity hits multi-month lows – Is SOL headed for a $100 retest?
Journalist Share this article Solana’s network activity is fading fast, with transaction fees plunging to a six-month low. Unless activity rebounds, Solana risks deeper price corrections. Solana [SOL] has dropped to a seven-month low, losing the $120 support with a 10% weekly decline. With the FTX unlocking flooding supply and weak hands exiting, clearly the sell-side pressure has dominated. Notably, no strong demand zones have formed on Solana’s 1D price chart since its fall from $270, making deeper corrections almost inevitable. But the pain may not be over yet. Solana’s network activity is fading fast, with transaction fees plunging to a six-month low of 53,800 SOL last week – an 85% collapse from January’s peak during the TRUMP and MELANIA meme coin frenzy. Source: Artemis Terminal With fewer traders interacting on-chain, demand for SOL is shrinking. Solana’s Total Value Locked (TVL) has also dropped to $8.15 billion from $14.50 billion in mid-January, signaling a major liquidity exit. The impact goes beyond fees – active addresses have dropped 35% to 3.8 million. With Solana’s network activity on a decline, no key demand zones on its price chart, massive unwinding in both Futures and DeFi trade, holding $120 looks increasingly difficult. Is a deeper drop to new yearly lows next? Key levels to watch The factors above align with SOL’s 55% price drop since mid-January, just a day after hitting its $270 all-time high. The surge in Solana’ network activity driven by the TRUMP and MELANIA memecoin frenzy has clearly faded. With the crypto market shedding over $200 billion and Bitcoin sliding below $80K, high-cap assets like SOL are struggling to hold key levels. Sell-side liquidity has driven $40.75 million in long liquidations, reinforcing downside pressure. Given weak on-chain demand on Solana network, heavy liquidations, and continued unstaking, SOL risks extending losses toward $100 – $112 – especially if Bitcoin fails to reclaim critical support. Source: TradingView (SOL/USDT) This level previously acted as a strong demand zone a year ago, sparking a rebound to $180. However, given the deterioration in Solana’s network activity and the broader risk-off sentiment, a FOMO-driven recovery remains distant, potentially exposing SOL to a deeper drop toward $100. Share