Solana TVL Jumps 10x Since 2024 While SOL Tests Critical Levels

Solana is displaying an increasingly polarized split between chain usage and price action. According to data from Token Terminal, Solana apps now hold roughly $30 billion of user assets, up significantly from last year. Application TVL is up roughly tenfold since January 2024.

That increase represents steady usage of Solana-based platforms, even as market conditions have changed. The growing amount of assets on apps suggests that users are continuing to put money into the network rather than pulling out.

Price Structure Still Signals Ongoing Correction

Even with solid app performance, SOL’s price shows lingering doubt. Right now, the trade looks like it’s still adjusting within a weakening phase. What we see so far fits a step back inside a broader downward trend. The move so far may just be one part of a broader slide, unfolding through a smaller correction phase. Price behavior now points to a deeper retreat unfolding beneath the surface.

A shift in perspective doesn’t erase what just happened – this dip still fits the pattern of an A-wave. That doesn’t rule out one more drop ahead; either a bounce starts here, or pressure builds for another spike upward. Looking closer, prices might swing back toward $81 up to $90 again.

Also Read: Solana (SOL) Price Nears Breakout as ETF Inflows Return and $159 Comes Into Focus

Solana Weekly Chart Holds Key Long-Term Support

Solana is trying to find some stability on a weekly basis, as the price of Solana has been in a correction for quite some time now, since Solana was rejected at the upper Bollinger Bands ($240-$250). The current price of SOL ($144) is under both the 20-Week Exponential Moving Average (EMA) and 50-Week EMA, and this tells us there is still downward pressure on SOL from the Medium-Term perspective. However, Solana is currently above the 200-Week EMA ($123), a historical level of long-term support for Solana.

The past week’s candles reveal reduced upside or downside follow-through, indicating that downward pressure is waning at these levels. Bollinger Bands have begun to narrow after they had widened and, as such, are showing reduced volatility. Price is now trading in the lower part of the range for the Bollinger Band, but has yet to decisively drop through the lower Bollinger Band.

The RSI is currently near 44 and is beginning to trend upward toward neutral, and the MACD is still negative, but the size of the histogram bars continues to shrink. If price can sustain a move above the middle Bollinger Band (near $169), then we will see an improvement in the technicals; if price breaks down below $123, then we could potentially see a larger pullback.

Also Read: Solana (SOL) Price Strengthens After $10.8M ETF Inflows, Bulls Target $180