Solana is navigating a critical moment after an intense month of selling pressure. The asset now trades near $126.50, showing a mild 0.75% daily gain but carrying a 10.22% weekly decline. The market value has dropped 49% since its September 17 peak.
Santiment data indicates stronger participation across wallets, steady growth in new addresses, and rising interactions. This contrast suggests that sentiment may not fully match price weakness. It also hints at early accumulation behavior as the market reassesses risk conditions across major assets.
Rising On-Chain Activity Counters Steep Price Decline
Solana’s circulating supply stands at 560 million tokens, valuing the network at nearly $70.7 billion. Besides the macro pressure, traders are increasingly watching on-chain strength.
Consequently, the uptick in address creation offers a rare divergence during a sharp market reset. Moreover, the growth in active wallets signals continued confidence in Solana’s broader ecosystem.
Market watchers argue that this trend often appears near exhaustion points. Hence, the contrast between lower prices and rising participation is now shaping a debate among traders who monitor behavioral data.
As per comments from market analyst 0xBossman, Solana’s 51% monthly drop places the asset inside a historical support zone around $125 to $130. He noted that the location aligns with previous reaction levels.
He also remarked that Solana remains one of the market’s most momentum-driven assets. Hence, he sees the area as a calculated entry with a strict downside limit near $120.
Reclaiming $130 Becomes Key as Momentum Stays Fragile
Source: X
Analyst Crypto Tony added another view centered on the lower-timeframe trend. According to his assessment, Solana needs to reclaim $130 to flip market structure. He noted that every attempt to push higher has stalled at that barrier. Moreover, he pointed out that a clean move above $130 may open the way toward $135 or even $140.
However, network activity shows a different story. However, a rejection at that point could send Solana back to $124. It may even expose $120 if sellers remain aggressive. Hence, the current zone remains a do-or-die region that demands strong confirmation.
Source: https://coinpaper.com/12541/solana-tests-key-125-support-as-activity-jumps-despite-49-price-slide
