Solana Price Weakens as Momentum Fades Near $90 Resistance

The Solana (SOL) price has been on an upward trajectory since the start of the second half of the month, but its momentum is beginning to slow down as it nears the crucial $90 resistance level. This trend reversal raises questions about the sustainability of the current rally and whether a 10% pullback could be imminent.

One key indicator of this weakening momentum is the decline in Solana's monthly active users, which has dropped significantly from its peak to around 10 million. This sustained downtrend suggests that retail participation and on-chain activity are waning, making rallies more fragile and dependent on external factors such as liquidity and sentiment.

However, despite this decline in user activity, the stablecoin supply on Solana has expanded sharply, rising to nearly $15 billion. This growth indicates strong liquidity inflows into the ecosystem, providing ample 'dry powder' for trading, DeFi activity, and short-term speculation.

The market structure is thus conflicted, with a capital-driven market dominating over fundamental factors. While increased stablecoin supply can support price rallies, the lack of user growth raises concerns about sustainability, making the current trend more reactive than fundamentally strong.