Solana Price Retests 12-Month Support Despite TVL Making Historic High

Solana price action has been feeling the heat as tariff wars weigh in heavily on different asset classes including the crypto market. However, some aspects of the Solana network have remained intact and even delivered an inverse performance relative to price action.

Solana price action was heavily hit by the latest bearish market conditions. The cryptocurrency slid by as much as 24% from Tuesday last week. It dropped as low as $112.24 in the last 24 hours, which means it gave up all the gains achieved in the first half of March.

Solana price action | Source: TradingView

More importantly, the bearish market outcome also resulted in a retest of SOL’s 12-month support within the $112 price level. Solana price action managed to stay above this important level over the last few months but this time it could potentially slide lower.

Can Solana price secure enough demand for a rebound?

Market uncertainty is at an all-time high may further erode investor sentiment. This means SOL may be guaranteed to experience more downside if market conditions continue to deteriorate. Price could easily lose its current support if FUD continues to hammer down on sentiment.

Solana price could boost bullish confidence if it secures enough demand at the latest support levels to push prices higher. It is currently in the process of forming a bullish price-RSI divergence even if price sides towards the $100 level.

SOL spot flows have predominantly been in the red over the last 4 weeks. The cryptocurrency did not demonstrate signs of elevated spot inflows despite the recent support retest.

Solana TVL maintains upside despite market downside

Although SOL price action has been on an overall downtrend so far this year, the amount of SOL tokens locked has been steadily rising since late November. Solana’s TVL clocked in at 65.04 million SOL as of 2 April.

Solana TVL | Source: DeFiLlama

For perspective, Solana had 16.61 million SOL in lock-up as of 20 November. That means it has almost quadrupled since then and this may be interpreted as a sign of long term confidence. After all, Solana did turn out to be one of the best performing blockchains in 2024 and the same courtesy extended to SOL price action.

Solana’s TVL uptrend suggests that most long term holders buying at discounted prices have been staking for passive gains as they wait for long term appreciation. Also worth noting is that the TVL figure was within ATH territory. The previous ATH was 67.69 million SOL in mid-June 2022.

Solana network performance recap

Solana transactions paint a clear picture of how the bearish market conditions have impacted the network’s performance.

Transactions on the network soared as high as 76.75 million TXs on 23 January. Interestingly, this was just after price peaked at around the same period.

Daily transactions have since dipped below 50 million transactions in line with the bearish dominance since then. For context, the network registered 47.72 million transactions on 2 April.

Solana daily transactions | Source: DeFiLlama

Solana notably still managed to clock impressive daily transactions despite Q1 market headwinds. A clear indication that the network is still experiencing healthy utility. This suggests that Solana could still be at the top of its game in the next bullish phase just as it was in 2024.

Solana active addresses also took a hit in the last 2 months. The number of daily active addresses dropped from 5.69 million addresses on 24 January to 2.77 million addresses by 16 March.

Solana daily active addresses | Source: The Block (Dune Analytics)

It is worth noting that Solana daily active addresses ticked up considerably since mid-March. This was largely because of accumulation after price retested the aforementioned 12-month support, leading to some accumulation.

These observations suggest that the market could potentially experience lower activity and Solana price could remain subdued if the market remains in a state of uncertainty in April.