Solana Breaks November Downtrend as Ecosystem Metrics Strengthen
Solana (SOL) has broken above its November descending trendline and held support after a retest, signaling a potential shift from bearish to bullish momentum. Price was trading around $136.85 with intraday resistance near $140–$150 and support at $136.64 and $128.68. Technical structure shows a confirmed trendline breakout, but analysts caution that higher volume is needed to validate a sustained rally. On-chain and ecosystem metrics underpin the move: total value locked (TVL) is reported at $8.946 billion, stablecoin market cap at $14.057 billion, daily fees ~$575,374 (chain revenue ~$90,319), application fees $7.82 million, DEX volume $2.961 billion and perpetual volume $783.64 million. Daily inflows of $14.71 million and 2.11 million active addresses indicate strong user engagement. Solana also reportedly captured 95–99% monthly market share in tokenized stocks through October 2025, reinforcing its lead in asset tokenization. Key takeaways for traders: (1) the trendline breakout suggests upside potential if the ascending support holds; (2) monitor volume and the retest zone—loss of support would invalidate the bullish case; (3) robust on-chain activity and TVL lend fundamental support, but short-term volatility and corrective structures remain possible. Relevant technical levels: resistances ~$140, $149.9, $166.4; supports ~$136.64, $128.68, $121.65. This development is relevant for traders planning position entries, stop placement and risk management around SOL moves.
Bullish
The article reports a confirmed trendline breakout with a successful retest, a classic technical signal that typically precedes upward moves if support holds. This is reinforced by strong fundamental on-chain metrics: high TVL ($8.946B), large stablecoin supply ($14.057B), multi-billion-dollar DEX and perpetual volumes, and significant daily active addresses and inflows. Solana’s dominant market share in tokenized stocks (95–99%) further supports demand-based adoption. Historically, similar breakouts on improving on-chain fundamentals have produced short-to-medium-term rallies in liquid large-cap tokens, provided volume confirms the move. Short-term impact: likely bullish as momentum traders and buyers may add positions near the retest/support levels; watch for confirmation via sustained volume and price above initial resistance (~$140). Long-term impact: neutral-to-bullish — durable if Solana maintains ecosystem growth, TVL and tokenization dominance; however, regulatory risks, broader market corrections, or loss of the ascending support would negate the bullish thesis. Traders should manage risk with stops below the retest zone and monitor volume, network metrics and macro crypto sentiment.