Solana’s native token SOL has come under renewed selling pressure after onchain indicators pointed to weakening network activity and declining investor confidence. With total value locked falling to its lowest level in six months and technical charts flashing bearish signals market participants are increasingly questioning whether SOL could revisit the $80 to $90 range in the near term.

SOL price tumbles after losing key support

SOL has fallen sharply from its cycle high of $255 recorded on Sept. 18. As of Nov. 21 the token was trading around $128 which represents a decline of roughly 52 percent. The drop followed a broader correction across the altcoin market during which Bitcoin briefly slipped to a seven month low near $80,000.

This sustained weakness has pushed SOL below several long term support levels. Analysts note that once these levels were lost selling pressure accelerated as traders moved to cut risk. Both technical structures and onchain data now suggest that the downside trend may not yet be complete.

Solana TVL falls back to June levels

One of the clearest signs of reduced confidence in the Solana ecosystem is the sharp contraction in total value locked. Data from DefiLlama shows that Solana TVL has dropped by more than 34 percent to $8.67 billion from a peak of $13.22 billion reached in mid September. The figure has remained below $10 billion for the past 30 days which places it back at levels last seen in June.

The decline has been led by Jito liquid staking which has seen its locked value fall by 53 percent since mid September. Other major protocols have also suffered heavy outflows. Jupiter DEX recorded a 30 percent decline while Raydium and Sanctum protocol each fell by around 46 percent. These figures highlight a broad based reduction in capital deployed across Solana decentralised finance.

Onchain activity shows weakening demand

Beyond TVL other network metrics also point to slowing usage. Solana’s chain fees totalled $3.43 million over the past week which marked an 11 percent decline compared with the previous week and a 23 percent drop from last month.

Active addresses on the base layer have fallen by 7.8 percent over the same seven day period while transaction count has declined by 6.3 percent. Together these metrics suggest that fewer users are interacting with the network which reduces demand for SOL as a utility asset. Lower fees and reduced activity often act as headwinds for price recovery during market downturns.

Memecoin trading volume collapses

The downturn in Solana’s ecosystem has been particularly evident in the memecoin sector which was a major driver of activity earlier in the year. Solana based memecoins have posted double digit losses on both weekly and monthly time frames with many tokens down between 10 and 25 percent from recent highs.

This price weakness has been accompanied by a dramatic fall in decentralised exchange volume. According to Blockworks Research weekly DEX volume on Solana linked to memecoins has plunged by 95 percent to $2.7 billion from a peak of $56 billion recorded in January. The sharp contraction indicates fading speculative interest and significantly lower transaction throughput on the network.

Bearish chart pattern points to further downside

Technical analysis adds to the cautious outlook. TradingView data shows that SOL is trading below a bearish pennant formation which is typically viewed as a continuation pattern following a strong sell off. After consolidating at lower levels SOL broke below the pennant support near $135 last week which opened the door for another leg down.

The measured move from this pattern suggests a potential target near $86 which would represent a further decline of around 32 percent from current levels. Before reaching that zone SOL may find interim support near the 200 week exponential moving average around $118 where buyers could attempt a defence.

Several traders have echoed this view. A pseudonymous leverage trader known as Grim said on X that he would not be surprised to see Solana trade between $90 and $100 in the near term. Others note that a confirmed break below $126 would further strengthen the bearish case and increase the likelihood of a move toward the mid $90s.