Solana (SOL) is facing a tough week, with its price extending a bearish trend after the latest U.S. inflation report shook crypto markets. September’s Consumer Price Index (CPI) rose 3.7% year-over-year, higher than the expected 3.6%, triggering a broader sell-off in risk-sensitive assets like cryptocurrencies. The data boosted Treasury yields and strengthened the U.S. dollar, adding to the downward pressure on SOL.
Compounding the macroeconomic challenges, Solana’s network activity has weakened significantly. Transaction volume dropped to $20.25 million, while daily active addresses fell to 3.74 million, signaling reduced participation. Key DeFi tokens in the Solana ecosystem, such as Jupiter (JUP) and Raydium (RAY), also took a hit, with JUP down 9.4% and RAY down 10.6%.
Technically, SOL has broken below key support levels, including a critical ascending trendline at around $111. The token is now trading below its 20-day and 50-day exponential moving averages (EMA) at $103. A further drop past the $100 psychological level could intensify the bearish momentum.
The near-term outlook for SOL depends on whether buyers return amid ongoing macroeconomic uncertainty. A recovery in market sentiment and a rebound in network activity could help stabilize prices, but persistent selling pressure and declining ecosystem engagement may prolong the downturn.