Solana (SOL) Price: Token Recovers to $140 After 14% Bounce From Friday Low

TLDR

• Solana (SOL) recovered to $140 on Monday after hitting $121.50 on Friday, gaining 14% but remaining down 30% over the past 30 days.
• SOL perpetual futures show negative funding rates since Friday, with traders paying to hold positions that profit from price declines.
• Total value locked on Solana network dropped 20% to $10.5 billion in one month, while weekly blockchain fees hit their lowest level since May.
• Solana maintains leadership in active addresses with a 13% increase in activity, while competitor Ethereum saw a 15% decline.
• Analysts identify $170 as key resistance level for SOL, with $126 acting as current support after recent price drops.

Solana’s native token recovered part of its recent losses on Monday, climbing back toward $140 after dropping to $121.50 on Friday. The 14% bounce represents a partial recovery for SOL, which remains down 30% over the past 30 days.

The token failed to fully reclaim the $140 level despite the rebound. Trading data shows SOL continues to underperform the broader altcoin market during this period.

Multiple factors have weighed on Solana’s price performance in recent weeks. Concerns about the United States economy have affected cryptocurrency markets broadly. Signs of labor market weakness and questions about artificial intelligence investment valuations have contributed to declining investor confidence.

The CEO of Deutsche Bank’s DWS asset manager told Reuters there is “no playbook” for valuing the AI sector. Consumer companies including Target, Home Depot and McDonald’s reduced sales expectations following weaker-than-anticipated earnings.

A 43-day US government funding shutdown complicated economic forecasts. The cancellation of October Consumer Price Index and unemployment data releases left traders with limited visibility ahead of the Federal Reserve’s December 10 monetary policy decision.

Derivatives Markets Show Bearish Positioning

SOL perpetual futures have displayed negative funding rates since Friday. This means traders are paying to maintain positions that benefit from further price declines. Under neutral market conditions, the funding rate typically ranges between 6% and 12%.

Aggregate SOL futures open interest has fallen 27% over the past 30 days. The decline indicates reduced demand for leverage among traders.

The premium on SOL monthly futures relative to spot prices dropped to 0%. This level is consistent with bearish market conditions. In neutral environments, this metric generally ranges from 5% to 10%.

Competition from other cryptocurrency products has affected Solana’s performance. The successful launch of XRP exchange-traded funds in the United States increased competition for institutional investment flows. Launches tied to Litecoin and Chainlink are expected to follow.

Network Metrics Present Mixed Picture

The total value locked on the Solana network declined to $10.5 billion on Monday. This represents a 20% drop from one month earlier.

Blockchain revenue measured by weekly fees fell to its lowest level since May. For comparison, Ethereum’s weekly fees decreased only 5% over the same 30-day period.

Solana maintains its position as the leader in active addresses and transaction count. The network holds a wide margin over second-place BNB Chain.

Data from Nansen shows a 13% increase in activity on Solana over the past 30 days. Ethereum recorded a 15% decline in activity during the same period.

Analysts have identified $170 as a key resistance level for SOL. The price point aligns with the 50-day and 100-day moving averages. Technical analysis suggests bulls need to reclaim this level to establish sustained upward momentum.

Current support sits at $126, which stopped the recent decline. Moving averages remain above current price levels, creating resistance for any recovery attempt.

The relationship between Solana and Bitcoin prices will influence future performance. A breakout to new highs against Bitcoin would signal broader altcoin strength.

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