- Solana tests key channel support at $148 as breakdown risks a drop toward $128.50
- On-chain outflows pressure Solana, but DeFi TVL grows to $8.61B since April
- RSI near 49 and weak MACD histogram signal indecision in Solana’s current trend
Solana’s price action has entered a critical phase as it navigates the lower boundary of its rising price channel. As of press time trading at $148.41, the cryptocurrency faces a pivotal test at this level. Analysts, including Carl Moon, highlight that a breakdown below this trendline could trigger further losses.
The immediate support zone rests near $128.50, a level that previously attracted significant buying interest. A decline toward this zone would mark a drop of around 14.5% from the current price.
However, holding above the channel’s lower boundary may revive bullish momentum and sustain the uptrend. Traders are closely monitoring price action and trading volumes to assess whether the bulls can defend this crucial area.
#Solana is ranging within this rising channel. If it breaks to the downside, the target is the support around $128,50🎯
— Carl Moon (@TheMoonCarl) July 4, 2025
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Technical Momentum Signals Neutral Market Sentiment
Technical indicators present a mixed picture for Solana. The MACD line sits slightly above the signal line, suggesting a weak bullish bias. However, the green histogram bars remain faint, pointing to limited upside momentum.
Meanwhile, the Relative Strength Index (RSI) holds near 49, placing Solana in a neutral zone. This reading reflects market indecision, with neither buyers nor sellers gaining a clear advantage.
Besides the technicals, on-chain data paints an interesting story. Solana’s net spot inflows and outflows have fluctuated sharply throughout the year. Notably, a major inflow spike in January coincided with a price surge toward $268.83.
However, since mid-February, consistent outflows have pressured prices lower. The latest data from July 5 reveals an $8.2 million net outflow, with Solana trading at $148.45. Consequently, the price remains far below its yearly peak, reinforcing the importance of current support levels.
DeFi Growth on Solana Network May Support Future Gains
Despite recent price weakness, Solana’s network fundamentals continue to strengthen. According to DeFiLlama, the total value locked (TVL) on Solana has grown from $6 billion in April to $8.61 billion.
This steady rise in DeFi activity highlights increasing demand on the network. Moreover, the number of returning wallet addresses has climbed to 3.3 million, reflecting rising user engagement.
