Solana has recently fallen back to around $79.5, once again approaching the lower end of the $76-$90 trading range it has maintained for the past few months. Along with the price weakening, Solana's on-chain activity, decentralized trading volume, and derivatives open interest are also declining, indicating a cooling of market participation.
Active users continue to decline
The on-chain data cited in the article shows that Solana's active user base has dropped from nearly 3 million earlier this year to less than 2 million recently, with the latest figure at approximately 1.9 million. The continuous decline in user activity over the past few months indicates that this slowdown is not a short-term fluctuation.
A decrease in active users typically means a simultaneous decline in transactions, application usage, and financial participation within the ecosystem. This also weakens a key fundamental factor that previously supported SOL's performance.
DEX trading volume and open interest both declined.
In addition to user data, trading volume on the Solana on-chain DEX has also been declining since its peak this year. DefiLlama data shows that daily trading volume is significantly lower than the previous levels of several billion dollars, reflecting a weakening of on-chain liquidity and speculative demand.
Similar changes have occurred in the derivatives market. Open interest has fallen from a high of nearly $3 billion to approximately $2.1 billion. Decreasing open interest typically indicates that traders are closing out positions or reducing leverage, and are becoming more cautious in their short-term directional judgments.
However, funding rates remain positive. This means that despite decreased on-chain and derivatives participation, overall market positioning remains bullish.
Short liquidation concentrated between $83 and $87
The article also mentions that the Coinglass liquidation chart shows a large short liquidation zone above $83 to $87. If the current price rebounds from around $79.5 and regains the nearby resistance level, it could trigger a round of passive covering, amplifying upward volatility.
This puts SOL in a sensitive position: on the one hand, the decline in active users, DEX trading volume, and open interest still corresponds to a weak market structure; on the other hand, the concentration of short positions above makes short-term rebounds more likely to be amplified.
The market is currently focused on support around $76, while resistance lies in the $83-$87 liquidity range. A move outside this range could clarify the direction of the price action.
