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▲ Solana (SOL)/AI-generated image ©
Despite unprecedented network technology, with 67.7% of the total circulating supply locked up and Firedancer, which processes over 1,000,000 transactions per second (TPS) on the mainnet, now operational, Solana (SOL) price remains trapped below key moving averages, continuing a fierce tug-of-war around the $73 mark.
According to investment media TradingNews on August 6 (local time), Solana traded down 1.02% over 24 hours at $73.16, confined to a narrow range between $71.98 and $74.28 during the session. The current price is 26.4% below the 20-day Exponential Moving Average (EMA) of $75.81, the 50-day EMA of $76.27, the 100-day EMA of $79.72, and also the 200-day EMA of $92.45. With all Exponential Moving Averages positioned above the price, forming a perfect bearish alignment, trend-following funds are exiting, creating layers of short-term and medium-term technical resistance.
Technical indicators also reflect a conservative sentiment. The 14-day Relative Strength Index (RSI) is 43.05, indicating a bearish bias, but it has not reached the oversold threshold of 30, which would trigger a technical rebound, leaving room for further declines. The Moving Average Convergence Divergence (MACD) histogram is at -0.44, showing weakening momentum. In the derivatives market, the open interest for futures has shrunk to $4.77 billion, and funding rates are decreasing, indicating a dominant sell-side perspective among retail investors. Solana spot ETF assets also remain at $879.19 million, down from their peak.
On the other hand, the on-chain network's supply structure forms a strong liquidity defense layer, supporting the downside. Out of a total circulating supply of 581,306,425 units, approximately 393 million units, or 67.7%, are locked up in validator contracts, severely limiting the actual tradable liquid supply. Furthermore, a "half-and-half" disinflation proposal to double the issuance reduction rate and decrease new supply has passed its first vote, driving policy changes to enhance token scarcity.
In terms of technology and real-world adoption, Solana continues to achieve unique results. Firedancer, an independent validator client, has begun operations on the mainnet, ensuring high stability, and has recorded processing speeds of over 1,000,000 transactions per second (TPS) in a test environment. Additionally, a Visa card has been launched that allows payments using the Solana-based stablecoin (USDPT) issued by Western Union, expanding the real-world payment network to 100 million customers. The number of active developers has increased by 83% year-over-year to 17,708, driving ecosystem expansion.
Experts point to the short-term lower support line of $72.27 and the key trend reversal zone of $77 as short-term inflection points. If $72.27 breaks, there is a risk of retreating to the $70.62 and $70.58 levels. However, if the price breaks through $77, where major resistance lines are concentrated, a gradual rebound towards $79.72 and the 200-day EMA at $92.45 could occur, according to analysis.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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