Solana's On-Chain Strength Sparks Hopes for Reversal
Solana's price has been bearish for 10 months in a row, but its on-chain fundamentals are showing signs of improvement.
The $60 region is becoming increasingly important as a long-term support level, and while the price remains weak, network activity is actually increasing. In July, Solana processed 8.7 billion transactions, its highest monthly count in four months, according to Token Terminal data.
The SIMD-0286 upgrade has eased fee pressure, with transaction fees falling by 30% since its activation on July 29th. This improvement in network efficiency could be a positive sign for Solana's future price action.
An analyst notes that Solana is forming the same breakout-and-retest structure that preceded its strongest rallies in 2021 and 2023, suggesting that it may be building towards another major move.