While long-term fundamentals remain strong, the cooling in on-chain activity could limit near-term gains unless SOL breaks above key resistance at $237.
Solana (SOL) remains one of the strongest-performing altcoins in 2025, currently trading at $229.84, up 1.54% in the past 24 hours. However, new data suggests the network’s growth momentum has cooled, potentially limiting the token’s ability to sustain its bullish trend in the short term.
According to Blockworks Research, Solana’s Network Real Economic Value (REV), a key metric that measures actual transaction activity through fees and out-of-protocol tips, has significantly declined from its late 2024 highs.
During the market frenzy in December 2024, weekly REV briefly exceeded $200 million, fueled by heightened decentralized exchange activity and speculative memecoin trading.
Fast forward to mid-2025, Solana’s REV has stabilized between $40 million and $60 million, signaling a normalization in user demand and on-chain activity. This cooling phase could temper enthusiasm among traders who were anticipating a breakout run similar to the one witnessed during last year’s explosive rally.
From a technical standpoint, Solana remains in a rising channel structure, with support at $218 and resistance around $253. The 50-day and 100-day moving averages, both hovering near $217-$218, are acting as dynamic support zones, preserving Solana’s broader uptrend despite the slowdown in network fundamentals.
Price action on the chart reflects this balance of optimism and caution. After being rejected at $237, SOL is consolidating while forming higher lows, a sign of potential accumulation. The Relative Strength Index (RSI) stands at 54, indicating a neutral setup that could swing either way depending on whether buyers defend the lower end of the channel.
If Solana manages a daily close above $237, the next short-term price targets sit at $244.85 and $253.44, aligning with key Fibonacci extension levels. On the downside, failure to maintain support at $218 could trigger a retracement toward $214 or even $204, both previously tested accumulation zones.
Despite the cooling of short-term network activity, Solana’s long-term fundamentals remain robust. The blockchain continues to see increasing developer engagement, institutional interest, and integration of tokenized assets and DeFi protocols.
Analysts note that these factors could provide a strong foundation for future growth once transactional activity rebounds.
While Solana’s technical structure remains bullish, the decline in on-chain revenue and transaction intensity could slow near-term gains. Traders should watch the $218 support and $237 resistance levels closely for direction. A confirmed breakout above resistance could reignite Solana’s momentum toward $253, reaffirming its status as a leading altcoin heading into Q4 2025.
