According to on-chain data from Artemis, Solana's daily transaction count has dropped to 79.8 million, the lowest level since January 2026. Despite this decline, the price of SOL has risen 2.4% over the past 24 hours, creating a notable divergence that raises questions about the sustainability of the current price momentum.
On-Chain Activity Hits a Low, Price Bucks the Trend
A drop in transaction volume typically signals weakening network demand. However, SOL's simultaneous price increase defies conventional logic, suggesting short-term speculative forces or specific catalysts at play. Market participants are closely watching whether the gap between on-chain data and price action will widen further.
Technical Indicators Flash Short-Term Bullish Signals
Despite weak network activity, several technical indicators point to accumulating bullish momentum. The Accumulation/Distribution (A/D) line has been trending upward for five consecutive days, indicating sustained buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) is approaching a bullish crossover. If confirmed, this could trigger additional price gains. Analysts note that if SOL breaks above the resistance of its descending channel, the next target could be $99.
Long-Term Fundamentals Remain Solid
While short-term data appears concerning, Solana's long-term fundamentals remain robust. In Q1, the network's stablecoin supply increased by 5%, and decentralized finance (DeFi) volumes surged by $500 billion. These figures suggest that real usage and capital inflows have not stalled, and the current price-on-chain divergence may be temporary. If price momentum continues, on-chain activity is expected to gradually realign with the price trend.
In summary, Solana is experiencing a notable divergence between declining network activity and rising price. Technical and fundamental factors provide some support for bulls, but investors should remain cautious about the risk of a pullback if network demand continues to weaken.