Solana Navigates Between Institutional Trust And Technical Uncertainties

Solana is currently going through a consolidation phase between $164 and $185, oscillating around $174. Paradoxically, this technical pause is accompanied by remarkable vitality in its DeFi ecosystem. Will this momentum be enough to propel SOL beyond its current consolidation zone?

A Solana DeFi Ecosystem That Defies Price Gloom

Solana is currently undergoing a technical consolidation phase, but the fundamental data tells a very different story.

Since April 1, 2025, the blockchain has seen its total value locked (TVL) rise from $6.63 billion to $9.34 billion, according to DefiLlama data. This 28% increase demonstrates growing investor confidence in the ecosystem.

This growth is explained by Solana’s technological strengths: negligible transaction fees and a high processing throughput that attract developers and users alike.

Investors are locking in their cryptocurrencies massively into smart contracts, anticipating long-term holding. This strategy mechanically reduces the available supply on exchange platforms.

At the same time, the derivatives market confirms sustained interest in SOL. Open interest on futures stands at $7.35 billion, accompanied by a daily trading volume of $9.4 billion. These figures reveal intense activity and bullish bets on the future price development.

Technical Signals That Temper Optimism

Despite these encouraging fundamentals, Solana’s technical analysis paints a more nuanced picture. The price currently moves within a narrow corridor between $164 (crucial support) and $185 (stubborn resistance). This consolidation has lasted for weeks, creating palpable tension in the markets.

Technical signals are sounding the alarm. The MACD switched to sell mode on May 18, a sign that the bullish momentum is fading. The RSI index is dangerously sliding towards 50 points. A drop below this threshold would likely trigger a correction.

Traders are closely watching the price’s reaction to the ascending trend line, the break of which would probably trigger selling pressure.

In the event of a bearish breakout, supports to watch are at $159 (confluence of 50 and 100-day moving averages) and then $140 (demand zone tested in early May). Conversely, breaking above $185 would reopen the path towards $200, a level tested as resistance in April.

In summary, Solana is at a decisive moment. On one side, its DeFi ecosystem is thriving and attracting more and more investors. On the other, the charts call for caution. Does this technical pause hide preparation for a breakout or announce a correction? The coming weeks will provide the answer.