Solana Holds Critical Support as Activity Cools

Solana is trading near a pivotal zone after an extended corrective phase that has steadily compressed both price and leverage. Buyers remain cautious as they await clear trend confirmation.

On the daily chart, SOL is hovering just above the $115 – $118 support area. A level that acted as a short-term floor following multiple failed recovery attempts toward former resistance.

Price structure shows a clear sequence of lower highs since the late 2025 peak, with each rebound facing selling pressure near declining resistance levels.

Short-Term Bounces Without Follow-Through

SOL’s attempts to reclaim the $145-$150 range have consistently stalled. Therefore, it reinforces the idea that sellers remain active in times of strength.

Similarly, momentum remains silent, with continuous short-term bounces evident, but without proper follow-through.

Volume behavior fits the same narrative. Indeed, spikes tend to accompany sharp downside moves, while upside candles show comparatively lighter participation.

That imbalance suggests buyers are still cautious, waiting for clearer confirmation before committing size.

As long as SOL remains capped below its descending resistance structure, rallies are likely to remain corrective in nature.

On-Chain Activity Points to a Market Reset

Derivatives data add strength to the wider cooling trend. Total Solana open interest sits near $7.5 billion, with recent 24-hour changes showing a mild contraction.

Taking that into consideration, the reduction might reflect position unwinding, which is a common feature during consolidation phases, especially after volatile trends.

Moreover, recent sessions saw elevated liquidations across the market. However, these came without the kind of cascading leverage flush that typically marks local bottoms.

Therefore, leverage seems to be reducing gradually, not forcefully reset, which can extend sideways conditions.

On the other hand, long-term signals seem more constructive. Indeed, active addresses on Solana remain elevated compared to previous cycles, even as price pulls back.

This divergence implies that network usage and participation haven’t collapsed alongside price. Pointing to structural engagement beneath the surface.

If support near current levels holds and derivatives exposure continues to normalize, the groundwork for a more stable base may form.

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