Technical resistance sits at $144 and $170, with analysts watching whether bulls can defend the $126 support level
Solana’s native token recovered part of its recent losses on Monday but failed to hold above $140. The cryptocurrency gained 14% from its Friday low of $121.50, yet remains 30% down over the past month.
This performance trails the broader altcoin market recovery. Traders are now evaluating whether the bounce can sustain momentum toward higher price targets.
The derivatives market shows continued stress for SOL. Perpetual futures funding rates turned negative on Friday and have remained there through Monday.
This means traders are paying to hold short positions that profit from price drops. Under normal market conditions, funding rates typically range between 6% and 12%.
Aggregate futures open interest for SOL has dropped 27% over the past 30 days. This decline indicates reduced demand for leveraged trading positions.
The premium on SOL monthly futures compared to spot prices has fallen to 0%. This reading signals highly bearish market conditions.
In neutral markets, this premium usually sits between 5% and 10%. Negative readings point to an absence of demand for bullish positions.
The total value locked on the Solana network fell to $10.5 billion on Monday. This represents a 20% decrease from one month earlier.
Weekly network fees have dropped to their lowest point since May. These declining fees help explain why SOL has underperformed compared to other major altcoins.
Ethereum’s weekly fees fell only 5% over the same period. This contrast highlights Solana’s specific challenges beyond broader market conditions.
Competition from other cryptocurrencies may be affecting institutional capital flows. XRP exchange-traded funds launched successfully in the United States.
Additional ETF launches are expected for Litecoin and Chainlink. These products could divert institutional investment away from SOL.
Despite weak price action and falling fees, Solana maintains its position as the blockchain leader in active addresses and transaction count. The network holds a wide margin over second-place BNB Chain.
Data from Nansen shows Solana’s active addresses increased 13% over the past month. During the same period, Ethereum recorded a 15% decline in activity.
Solana also leads all chains in decentralized exchange volume and application revenue. These metrics demonstrate continued user engagement with the network.
On the weekly timeframe, the $126 level has provided support during the recent decline. Bulls need to reclaim the moving averages to resume an upward trend.
The 50-week and 100-week moving averages converge near $170. This creates the first major resistance level for any recovery attempt.
On the daily chart, $144 represents the next lower timeframe resistance. Breaking above this level would require the moving averages to flatten and turn upward.
A move toward $160 would require stronger conviction from traders. Current derivatives market conditions and network fee trends suggest limited near-term upside without improved fundamentals.
The cryptocurrency’s performance against Bitcoin shows a higher low forming on the weekly timeframe. If this pattern holds and SOL breaks to a new higher high against BTC, it would signal relative strength returning to the altcoin.
