Solana's Price Action Hints at Weakening Demand and Uncertain Future

The Solana price has been stuck in a narrow trading range over the past few days, with support at $80 and resistance at $95. This lack of momentum has prevented the token from breaking into the $100 range, which could have attracted significant buying pressure.

While the broader crypto market remains uncertain, on-chain data suggests that Solana's underlying demand is weakening. The token's Total Value Locked (TVL) has been trending downward over several months, indicating a decline in on-chain liquidity and user participation.

Monthly active addresses have also dropped significantly from peak levels above 100 million to nearly 34 million recently, highlighting a reduction in user engagement. This decline in both TVL and active addresses strengthens the case that Solana's ecosystem is experiencing a slowdown rather than expansion.

The overall trend remains bearish, with SOL price continuing to trade within a descending channel. A breakdown below the $80-$78 support range could lead to a decline towards $76, while a potential recovery may emerge if Solana price manages to reclaim the $86-$90 resistance zone.