Solana Soars to 7-Month Peak While Network Activity Crashes to April Lows

Solana's hitting heights not seen since February—just as its actual usage tanks to springtime levels.

The Paradox Pump

SOL price action defies gravity while on-chain traction evaporates. Seven-month highs flash on charts, but network activity tells a darker story—engagement metrics have rolled back to values last recorded in April.

Traders chase momentum, not utility. Who needs users when you've got speculators? Another day in crypto—where price and purpose often diverge, and traditional finance guys still don't get it (but they will).

Solana Is Reaching Its Saturation Point

The Relative Strength Index (RSI) is approaching a critical zone. While RSI levels above 70.0 typically signal overbought conditions, solana has historically reversed much earlier. In fact, past declines have begun when RSI crossed the 62 mark.

Currently, Solana’s RSI sits at 61, putting the altcoin on the edge of saturation. If the trend repeats, SOL may be primed for a short-term correction, potentially cooling off before resuming its broader uptrend.

On-chain data reveals that new addresses on Solana have dropped to levels last seen in April. This marks a five-month low and indicates waning interest from fresh investors. For any asset, declining new entries can signal weakening momentum.

The decline may be tied to Solana’s month-and-a-half-long rally, which could appear overheated to new participants. With the risk of a pullback looming, some investors may prefer to wait rather than risk entering at a potential peak.

SOL Price Could See A Decline

At the time of writing, Solana trades at $219, holding firm above its $214 support floor. This represents a seven-month high, with the token facing resistance at $221. Sustaining this level will be crucial in shaping short-term direction.

Should momentum fade, Solana’s price could retrace to $206 or even lower, testing $195 as support. Such a correction WOULD align with the RSI and address data signals pointing to short-term cooling.

Conversely, if existing SOL holders push demand, the altcoin could defy bearish signals. A breakout above $221 would strengthen the bullish case, potentially driving Solana toward $232 and invalidating expectations of an imminent decline.