Will Solana Price Break Lower by August End?

• The Solana price is poised for a breakdown below $175 amid the formation of a head and shoulders pattern.
• The number of active addresses on the network has dropped by 7% since last week, indicating a clear slowdown in user activity.
• A declining trend in SOL’s futures open interest records a 13% amid the recent market correction, signalling a waning interest from market participants.

The Solana price shows a sharp rebound of over 4.7% during Wednesday’s U.S. market hours to trade at $184.4. The buying pressure came as a relief rally in the broader crypto market after a sharp correction since last week. The declining trend in SOL futures open interest (OI) and the number of active addresses on the network is fueling prevailing bearish momentum in price, signaling a risk of bearish breakdown ahead. The formation of a technical chart pattern in the daily chart reveals how low the coin price could plunge by August’s end.

Solana Price Declines as Network Activity and OI Decline in Tandem

Since last week, the Solana price has shown a brief correction from $209.86 to a low of $175.6, accounting for a 16.28% loss. The pullback followed a broader market correction as Bitcoin dropped below the $115,000 floor amid U.S. macroeconomic developments.

Along with price correction, the number of active addresses on Solana dives from 2.91 million to 2.72 million, projecting a 7% loss. The active addresses reflect the user’s participation on the network, including transactions and interaction with decentralized apps.

Thus, the current decline suggests that fewer users are engaging with Solana during the price pullback, pointing to reduced confidence or short-term disinterest. 

Simultaneously, SOL’s futures open interest has dropped from $11.65 billion to $10.13 billion, registering a 13% drop. A $1.52B wipeout in OI signals that traders are closing their open positions in the futures market or getting liquidated.

This often happens after a heightened volatility, where leveraged positions are forced to liquidate and overall speculative pressure is dropped.

The dual drop in OI and active addresses indicates that both speculative traders and network participants are stepping back. If the trend continues, the coin price could face additional bearish momentum to drive a prolonged correction.

Adding to the bearish note, a crypto whale wallet identified as ‘91GShr’ unstaked 98,291 SOL (worth approximately $17.83 million) and deposited all of it to the Binance exchange just 30 minutes after Lookonchain reported.

With a risk of a potential sell-off, a bearish bias from large investors could further fuel the market selling pressure.

Solana Price Poised for Prolonged Correction from this Reversal Pattern

On the daily chart, SOL’s latest price rebound emerged from the $117.5 neckline support of an inverted head-and-shoulders pattern. The chart setup is characterized by three successive troughs, with the middle one extended high and two short swings.

Currently trading at $184, the Solana price is likely forming the final right shoulder of this pattern before the neckline breakdown. If the sellers manage to hold the asset below $187.30 resistance, the sellers could force a bearish breakdown at $175.00 support, accelerating the selling pressure.

The post-breakdown fall could push the price 11.5% down to test a key support level at $155.77. The aforementioned support coincides with a long-coming ascending trendline that has acted as dynamic support since April 2025.

The previous reversals from this support have led to price rallies ranging from 67% to 97%. Thus, the anticipated drop to $155.77 could act as a pivot point for the Solana price to change the current trend direction.

On the contrary note, if today’s price breaks above the $187.3 resistance, the buyers could regain control over the asset for a higher rally.

Also Read: Will the SUI Price Correction Break $3 Floor?