Solana Price Prediction: SOL Tests Key Level While Network Activity Starts to Rise

Solana is currently trading at a crucial juncture. Following its rally to reach the $100 mark in May, the SOL price action has seen it fall back over the last couple of weeks and find support at $79-$81. On the surface, the chart remains weak. The price remains below key moving averages, and sellers have controlled most of the recent action.

But there’s more going on beneath the surface. Network activity is starting to recover, spot Solana ETFs are still attracting capital, and a new proposal could dramatically change how much SOL gets removed from circulation. At the same time, technical indicators indicate the current correction may be getting closer to its final stages.

Factors driving the SOL price right now

One of the biggest developments for Solana comes from a new governance proposal that targets the network’s token economics. Developer cavemanloverboy introduced a proposal SIMD-547, which would replace Solana’s flat fee system with a resource-based model where transaction fees are fully burned. 

Right now, the network burns only about 648 SOL per day compared to roughly 60,000 SOL issued daily. Under the proposed system, daily burns could increase anywhere from 16 to 100 times depending on network activity.

For holders, that’s a notable development. The increase in burning of tokens will mean a decrease in supply that is going into circulation, more so during periods of high network activity. The co-founder of Solana, Anatoly Yakovenko, has actually been advocating for this proposal already.

Institutional demand has also remained surprisingly stable. During the week between May 25 and May 29, spot SOL ETFs recorded roughly $2.36 million in net inflows. Reports of Goldman Sachs reducing ETF exposure and a sizable token sale weighed on sentiment around the $80 area. Even so, buyers have continued defending support.

Network activity is recovering despite the price correction

One of the promising signs can be attributed to the statistics from Solana's on-chain. For example, while the total number of active addresses was previously decreasing from about 4.8 million to about 4.1 million, it started to rise again, reaching over 4.6 million in the latest numbers.

Transfers are demonstrating a similar trend. After dropping to about 43.7 million from about 47 million, the total number of transactions started to increase again, reaching about 46.8 million – one of the highest figures in recent weeks. What makes this interesting is that these improvements are happening during a price correction.

The SOL price has been moving lower from the $100 region, yet user activity and transaction counts are climbing again. Historically, Solana has shown a strong relationship between network activity and price performance. When usage starts improving during a correction, it often points to underlying demand that isn’t visible from price action alone.

Analyst identifies a key zone for SOL

We had a look at the chart shared by More Crypto Online, and the Elliott Wave structure suggests the correction may be entering its final phase. The broader move appears to be unfolding as an ABC correction. 

Wave A has completed, Wave B is up, and Wave C is being completed. Within the context of Wave C, four out of five moves have been completed. Assuming that this count holds true, the market may still make one more push down before completing the entire correction.

The most important support area sits between $77.96 and $75.41. These levels align with the 50% and 61.8% Fibonacci retracement levels and create a high-confluence demand zone where many traders expect buyers to become active.

Here’s what the Solana charts are showing

We had a look at Solana’s daily and 4-hour charts, and both are centered around the same level right now: the $79-$81 support zone. On the daily timeframe, the SOL price is trading near $80.88 after pulling back from the May high around $99-$100. 

Solana daily price chart analysis

The correction has pushed price back into a major support area that traders have been watching closely. At the same time, the 100 SMA at $85.90 continues to cap upside attempts, and RSI has dropped to 36.58, showing the market is getting close to oversold territory.

The 4-hour chart paints a similar picture. The SOL price is holding near $80.79 and retesting the same support region after losing momentum over the past few sessions. The 100 SMA at $84.53 remains the first resistance level buyers need to reclaim, while RSI sits at 38.44, another reading that points to fading selling pressure.

Solana 4-hour price chart analysis

What makes this setup interesting is that several technical factors are lining up in the same area. Solana is testing an old breakout zone from the upside while trading above a significant support level. Also, both short-term and long-term periods have been seeing overbought signals. Such scenarios generally draw buyers.

Where could the SOL price go next?

Everything comes back to the $79-$81 support area.If buyers can keep defending this region, the first target higher sits around the 100 SMA between $84.50 and $86. A move above that level would improve the chart structure considerably and give bulls something to work with.

More Crypto Online also notes that a push above $88 would be the first strong signal that a local bottom has formed. That level would put the SOL price above recent resistance and weaken the bearish correction structure.

Beyond that, traders would likely start looking toward the $94-$96 area, which marks the previous Wave B high. According to CoinCodex’s 1-month SOL price prediction, Solana could move toward $107.10, which sits above the current trading range.