• Solana’s daily transactions have dropped nearly 50%, creating a divergence with its price surge.
• The network’s recent rally may be driven more by sentiment than actual usage.
• Price remains in a bullish structure, but losing $185 support could lead to deeper corrections.

Solana is showing signs of divergence between its market price and network activity. According to data from CryptoQuant, daily transactions on the blockchain have fallen sharply from around 125 million on July 24, 2025, to roughly 64 million now, a decline of nearly 50%.

This drop comes even as Solana’s price continues to climb, trading around $219.50 on the SOL/USDT pair.

Such a disconnect between price performance and transaction count raises questions about the sustainability of the ongoing rally. In a healthy market, increasing prices are typically supported by strong network usage.

The current data instead suggests that speculative trading might be driving the market rather than organic demand from DeFi, NFTs, or fund transfers within the Solana ecosystem.

However, a key distinction must be made between Solana’s financial transactions and its voting transactions, which maintain validator consensus. Around 80–90% of all Solana transactions usually fall under the latter category.

If the decline is mainly due to fewer voting operations rather than reduced user engagement, the drop may not reflect weakening fundamentals.

But if user-driven transactions have declined, it could undermine the credibility of the rally and raise the risk of a price correction.

Also Read: Solana ETF Race Heats Up as Bitwise Unveils 0.20% Fee Plan

Price Consolidation After Mid-Year Rally

On the technical front, Solana’s price action shows signs of consolidation after a strong recovery from mid-year lows. The Bollinger Bands reveal resistance around $248.24, while dynamic support sits near $185.83.

The token recently tested the upper band but failed to maintain momentum, indicating profit-taking at higher levels.

The Fibonacci retracement levels highlight key areas to watch. The 0.618 retracement level at $130.55 has acted as a strong historical support, while the next major zone near $165.80 aligns with the 20-week moving average, a potential rebound area if selling intensifies.

Indicators Suggest Solana Bullish Momentum With Caution

Momentum indicators stay bullish but bullish with caution. The Relative Strength Index is at 57.85, bearing low bullish strength but not in the overbought region.

The MACD line, at 16.58, well above the signal line at 11.79, asserts continuing bullish momentum but with decreased speed.

If Solana continues to hold up above $185, it could stretch for a breakout to $248 and possibly $280. Failure to sustain these levels, though, could induce corrections around $165 or as far down as $145.

The broader trend remains constructive but tempered by weakening on-chain activity, a factor traders should watch closely in the coming weeks.

Also Read: Solana (SOL) Price Eyes $600 as ETF Hype Drive Market Optimism