Solana (SOL) Faces Headwinds at $134: Bull Market in Question Amid Declining Network Activity and Key Resistance

Solana (SOL) is currently trading around $134, marking a nearly 4% decline in the past 24 hours, mirroring a broader correction in the cryptocurrency market.

Solana (SOL) faced headwinds at the $134 mark on Monday, showing a nearly 4% decline in the past 24 hours. This aligns with a broader correction in the cryptocurrency market.

Solana price today: Nearly 4% drop as crucial resistance holds firm

Solana prices dropped sharply after a significant 8% rejection at the $147 mark on Friday, March 25th. The crucial $150 resistance has proved difficult for SOL to break consistently over the past three weeks. This persistent inability to flip $150 into support has led many traders to question whether the once-vigorous bull market for Solana SOL/USD, fueled by the memecoin frenzy and the rise of AI-related crypto projects, has reached its end.

Solana’s price action remains lackluster despite bullish catalysts like the likely legalization of a Solana spot ETF in the US and the increasing adoption of tokenized real-world assets (RWA) on its network, including stablecoins and money market funds.

Optimistic voices like co-founder of TBH and Gas startups Nikita Bier highlight Solana’s strong basis for mobile-first decentralized apps (DApps) and the influx of new users brought by the memecoin surge. However, these fundamental attributes haven’t yet shown consistent drivers of increasing price momentum.

Investors are also noting a lack of progress in U.S. government crypto adoption. The latest disclosure, which focused on Bitcoin and skimmed over altcoins such as Solana, in its on-chain treasury holdings, might disappoint some.

Solana’s on-chain activity, specifically DApp sales and chain fees, has suffered a notable decline despite the rise in Total Value Locked (TVL) across various DeFi sectors like liquid staking and lending.

DApp revenue dropped from $23.7 million in the two weeks leading up to March 10th to $12 million in the next two weeks, according to Token Terminal data. In the same periods, base layer fees decreased from $6.6 million to $3.6 million. This decline in network utilization directly impacts the demand and valuation of the SOL token.

Solana is losing ground in DEX volume

Further raising concerns is Solana’s declining dominance among Decentralized Exchange (DEX) volumes. As seen by DefiLlama, even with a smaller TVL, BNB Chain has surpassed Solana in DEX volume. This shift highlights the increasing competitiveness and a possible loss of market share for Solana in a core DeFi statistic.

While trading activity has surged on platforms like Hyperliquid and Pendle, Solana’s overall DEX volume has decreased significantly since its peak in January 2025.

Interestingly, PumpSwap, a new automated market maker (AMM) for pump.fun token migrations, has rapidly risen to become the second-largest AMM on Solana in terms of volume. This activity underscores the ongoing, if perhaps speculative, interest in the Solana ecosystem despite the overall decrease in on-chain activity.

Solana price analysis: Bearish patterns emerge

Technically, several bearish formations on Solana’s price charts suggest the possibility for more declines.

Some analysts remain optimistic despite the concerning technical signals. Popular crypto expert Jelle suggests that Solana can rebound if TVL and fees on its network show a positive trend, especially considering its competitors.

Trader Flash notes that a confirmation of a declining wedge formation on the daily timeframe can lead to a substantial rally towards $265. However, given the current price action and declining on-chain metrics, the majority opinion leans towards caution.

The struggle to break through the $150 resistance and the development of negative trading signals indicate that Solana might experience more downward pressure in the short to mid-term if crucial support levels fail to hold.