Solana Weakens Short-Term as Weekly Transactions Reach 959M Record
Solana (SOL) shows short-term price weakness on the one‑hour chart despite a record spike in network activity. H1 price action indicates fading upside momentum after a failed rebound from the low‑$90s; SOL traded near $82.9 after losing a consolidation band around $85–$88, turning prior range support into resistance and exposing overhead supply in the low‑to‑mid $90s. On-chain metrics paint a contrasting picture: Artemis data (via SolanaFloor) recorded roughly 959 million transactions for the week ending Feb. 8, the highest weekly total in the dataset and a sharp jump from recent 400–600M weeks. The broader trend since late 2023 shows higher highs and higher lows in weekly transactions, signaling expanding baseline usage despite volatile week‑to‑week readings. Key takeaways for traders: short-term technical bias is bearish unless SOL reclaims and closes above the $85–$88 range; strong network throughput may support longer-term fundamentals, but price remains vulnerable to follow‑through selling and overhead supply in the low‑$90s.
Bearish
Short-term technical signals are bearish: SOL failed to hold a consolidation band around $85–$88 and now trades below that zone, which has flipped to resistance. The H1 chart shows fading upside momentum and clear overhead supply in the low‑to‑mid $90s—areas where sellers previously forced breakdowns. Those price-structure cues typically precede further downside until the market reclaims the broken range with decisive closes. However, on-chain fundamentals are improving: weekly transactions hit ~959M, the strongest on record in Artemis data, indicating rising network usage and demand for activity. Historically, similar cases (high on-chain activity while price weakens) can lead to divergence: short-term selling pressure may persist despite improving fundamentals, resulting in consolidation or a delayed price response to on-chain strength. For traders this implies: (1) short-term trades should favor downside or range-bound strategies with tight risk management until SOL closes back above $85–$88; (2) watch on-chain metrics—sustained high activity can underpin bullish medium-to-long-term narratives; (3) a reclaim of $85–$88 and break of overhead supply in the low‑$90s would shift bias toward bullish. In sum, expect near-term pressure but keep monitoring transaction trends for longer-term conviction.