TLDR
- Solana is testing crucial $217 support after pulling back from $230
- Network transaction volume has dropped 50% from 125 million to 64 million daily transactions since July 24
- A negative divergence exists between SOL’s rising price and declining network activity
- Bulls argue the transaction decline may stem from changes in voting activity rather than user engagement
- If $217 holds, traders are watching for a move toward $226-$228 resistance
Solana is facing pressure as it tests a key price level while data shows declining network usage. The token pulled back sharply from $230 and now sits at $217, a threshold that traders consider crucial for its near-term direction.
Market analyst Ali recently identified $217 as a pivotal level for Solana’s trajectory. The technical setup suggests this price acts as a foundation for potential recovery. Chart patterns hint at a possible W-shaped bounce if buyers defend this zone.
$217 will decide whether Solana $SOL rebounds or breaks down! pic.twitter.com/woo51tGpYy
— Ali (@ali_charts) October 10, 2025
The current price action shows Solana at an inflection point. The $217 area serves as the main line of defense for short-term bulls. If it holds, prices could push higher toward resistance levels.
Above current prices, the $226-$228 range has acted as stubborn resistance where SOL repeatedly failed to break through. Beyond that, a barrier sits around $236-$238, which remains the next major upside target.
Network Activity Shows Sharp Decline
While Solana’s price continues its rally, onchain data reveals a concerning trend. Daily transaction volume has fallen from approximately 125 million on July 24, 2025, to around 64 million today. This represents a drop of nearly 50%.
According to Crypto Onchain, a CryptoQuant analyst, this creates a negative divergence between price and network transactions. The pattern means SOL’s price climbs while overall transaction activity on the network drops.
Such divergences typically raise questions about sustainability. In a healthy market environment, price appreciation should be supported by growth in real ecosystem usage. This includes more DeFi activity, NFT transactions, and user transfers.
The data suggests Solana’s recent rally could be driven more by market sentiment and speculative enthusiasm rather than sustained organic demand onchain. However, the full picture requires examining which transactions are declining.
Historically, 80-90% of Solana’s activity consists of voting transactions, which are essential for maintaining network consensus. A reduction in those does not necessarily reflect lower user activity.
Bulls Point to Structural Changes
Market sentiment around Solana remains mixed. Bulls argue that the decline in transaction count could stem from structural changes in the network’s voting activity. This would mean the drop doesn’t indicate a true decrease in user engagement.
If the decline stems from reduced DeFi and NFT interactions, it could signal weakening fundamentals behind Solana’s price surge. Analysts are watching to determine whether this trend represents a temporary technical adjustment or an early warning of speculative overheating.
The next few sessions are critical for SOL. If Solana holds $217 and manages to reclaim $226, traders could see a move toward $236 and potentially higher.
On the flip side, if $217 fails to hold, deeper losses may follow. The next area of interest would be $210.
Solana’s price is influenced by several factors. These include renewed interest in layer-1 blockchains that compete with Ethereum and the continued growth of Solana’s DeFi and NFT ecosystems. Liquidity rotation between Bitcoin and altcoins can heavily impact how SOL performs in the short term.
