Solana’s price trajectory presents a fascinating paradox as technical indicators signal potential gains while underlying network activity shows concerning declines. Investors closely watch whether institutional interest can overcome weakening retail participation.
Solana Price Technical Outlook
Technical analysis suggests Solana price could reach $215-$220 by September 2025. Bullish indicators support this projection. The MACD shows a positive crossover pattern. Additionally, RSI remains above 50, indicating continued upward momentum. However, traders must monitor the $195 support level carefully. A break below this level could trigger significant reversal patterns.
Network Activity Contraction
Despite Solana price optimism, network metrics reveal substantial deterioration. Daily active addresses plummeted 83% from May’s peak. This decline reflects growing retail skepticism. Furthermore, DEX transactions dropped 45% from June highs. Fraud concerns surrounding meme coins contributed significantly to this decline. Analysts warn such divergence often precedes trend reversals.
DeFi Sector Performance
Solana’s DeFi ecosystem shows mixed signals despite Solana price stability. Total value locked reached $11 billion recently. However, chain revenue dropped 44.2% in Q2 2025. Key applications experienced substantial revenue declines:
- PumpFun: 43.9% revenue decrease
- Phantom Wallet: 65.4% revenue drop
- DEX Volume: 45.4% quarterly decline
Memecoin trading activity fade largely explains these reductions.
Institutional Support Growth
Institutional interest provides counterbalance to Solana price pressures. Major asset managers filed updated ETF applications recently. Fidelity and Franklin Templeton lead these efforts. Corporate treasury allocations also increased substantially. These developments may support Solana price stability. However, they might not fully offset retail participation loss.
Market Outlook and Risks
The Solana price outlook remains cautiously optimistic short-term. Technical patterns suggest continued upward movement. Nevertheless, fundamental metrics raise concerns. Network activity declines could eventually pressure Solana price. Investors should consider both technical and fundamental factors. Risk management remains crucial given current divergences.
Frequently Asked Questions
What is Solana’s price target for September 2025?
Analysts project Solana price could reach $215-$220 based on current technical indicators and market conditions.
Why has network activity declined despite price stability?
Network activity dropped due to meme coin fraud concerns, retail trader skepticism, and reduced DEX transactions across the ecosystem.
How has institutional interest affected Solana?
Institutional support through ETF filings and corporate treasury allocations has provided price support despite weakening on-chain metrics.
What are the key risk factors for Solana price?
Major risks include breaking below $195 support, continued network activity declines, and reduced DeFi revenue generation.
How has DeFi performance impacted Solana?
While TVL grew 30.4%, revenue dropped 44.2% in Q2 2025, creating mixed signals for long-term sustainability.
What technical indicators support bullish Solana price predictions?
Bullish MACD crossover and RSI above 50 currently support positive short-term price projections for Solana.
