Solana faces mounting technical pressure after losing key support levels, with market participants closely monitoring for signs of a deeper correction or potential reversal setup. The high-speed blockchain has encountered a rare setback in one of its most crucial performance indicators while SOL battles to maintain critical technical thresholds.
SUI Overtakes Solana in Stablecoin Transfer Volume
For the first time, Solana has been overtaken by SUI in monthly stablecoin transfer volume, marking an unusual slip in dominance for the established blockchain. July data from Artemis, shared by Torero_Romero, reveals SUI reached $224.3B in transfers, edging out Solana’s $210.7B. Although this doesn’t diminish Solana’s broader ecosystem advantages, it demonstrates that competing chains are beginning to erode its transactional leadership.
$SOL has been dumping the past few days following the general bearish trend, Broken $166 support and went as low as $155. But with the big liquidations we had the past 2 days and that bears have become vocal again, I think price might have bottomed at $155. It could still sweep… pic.twitter.com/VRItM8EAVN
— Logical TA (@tendorian9) August 2, 2025
The momentum shift presents a larger concern for Solana supporters. Having comfortably dominated this metric for months, getting surpassed by a newer blockchain raises questions about future performance. Should Solana fail to reclaim its position in upcoming months, this development could translate into weaker price performance.
Technical Analysis Points to Lower Support Zones
As Solana grapples with on-chain competition, its price chart reveals equally concerning signals. According to analysis shared by Hardy, the price has dropped below its recent consolidation range and is now targeting the $151 and $148 areas. These levels represent untested weekly and daily support zones that could serve as significant reaction points if selling pressure intensifies.
The market structure remains in corrective mode following the peak near $206, and the inability to maintain mid-range demand indicates that buyers lack conviction at current levels. This technical breakdown suggests further downside potential in the near term.
Analyst Karman_1s projects that Solana may initially attempt a recovery toward the $170 zone, which aligns with descending resistance levels. However, the analysis suggests this bounce will likely face rejection, potentially triggering a deeper decline into the $150 to $145 support area. The clear rejection from both trendline resistance and previous breakout levels strengthens the bearish continuation scenario.
Long-Term Bullish Pattern Emerges Despite Near-Term Weakness
Despite recent technical and on-chain challenges, analyst TedPillows presents a contrasting long-term perspective. His analysis identifies a potential cup and handle pattern developing on higher timeframes, with a projected neckline breakout that could propel Solana beyond its previous all-time highs. This formation suggests that even if prices decline toward the $140 to $150 range, the overall structure maintains a bullish bias.
The extended consolidation curve reinforces the possibility that Solana’s current correction represents the “handle” formation before a substantial upward move. Network fundamentals remain robust, and if support levels hold, the next breakout could prove significant for the token’s trajectory.
Solana’s recent performance reflects both short-term challenges and potential long-term opportunities. While losing momentum in stablecoin transfers and facing technical headwinds, the emergence of a possible cup and handle pattern suggests the current correction might represent a healthy consolidation rather than a complete reversal. Strong network fundamentals continue to support the underlying value proposition.
The critical test lies in whether SOL can maintain the $140 to $150 support zone and regain upward momentum. Success in holding these levels could validate the bullish long-term scenario toward new highs. However, immediate risks persist, as the failure to reclaim $170 and repeated tests of lower support demonstrate continued bearish control in the short term.
Impact on Investor Confidence
This development may dampen investor sentiment toward Solana in the near term, particularly given the combination of lost market share and technical breakdown. The dual pressure from competitive threats and bearish price action could prompt some traders to reassess their positions until clearer directional signals emerge.
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