- Solana (SOL) dropped 8% to $115 despite $4 billion in DEX volume and record on-chain activity.
- The $116 support level is now critical, with $134 serving as key resistance for any recovery.
- Analysts remain optimistic about Solana’s tech and memecoin growth potential if it regains bullish momentum.
Solana (SOL) dropped 8% to $115 after the Federal Reserve held interest rates steady at 4.25–4.50%. This decline came despite Solana recording nearly $4 billion in decentralized exchange (DEX) volume, outpacing Ethereum, BNB, and Base in on-chain activity.
Solana Surpasses Rivals in On-Chain Activity
Data from DefiLlama shows Solana leading blockchain activity over the past 24 hours, with $3.99 billion in DEX transactions. Ethereum followed with $1.74 billion, BNB Chain $1.68 billion, and Base $1.16 billion. Active wallet addresses on Solana have also surged, reaching over 2.7 million this week.
This spike in network activity is driven in part by memecoins, which have shown renewed investor interest. Analysts note that the SOL token has yet to fully reflect this activity in its price. Over the past year, SOL has declined nearly 50%, falling from its January peak of $294 to current levels near $115.
Since the October lows, memecoin activity has exploded.
Solana launchpad tokens went from 113,772 to 239,127
– That’s roughly +110%.
Launchpad graduations climbed from 575 to 1,796
– That’s around +212%.
Creation is up. Graduations are up even more.
Now fr, are memecoins… pic.twitter.com/U4Q0vr7oyQ
— Solana Sensei (@SolanaSensei) January 28, 2026
Key Support and Resistance Levels
Solana is now testing critical support around $116. Daily chart analysis indicates a bearish structure, with SOL trading below the 50-day, 100-day, and 200-day EMAs. Recent price rebounds appear corrective, lacking strong follow-through, and $116 remains a crucial demand zone.
Failure to hold this level could open the path toward $110, while a recovery requires reclaiming $134 with strong volume to shift short-term structure. If bullish momentum strengthens, the $156–$162 range could become the next potential target, though this scenario remains less likely.
Bullish Outlook from Tech and Network Fundamentals
Despite current weakness, analysts at Multicoin Capital value Solana at double its present price, citing superior technology, low fees, and a strong user experience. Solana founder Anatoly Yakovenko emphasized delivering consumer value and capturing future cash flows as the core of the network’s growth potential.
Solana’s next few trading sessions will be crucial. The $116 support zone and $134 resistance level will likely define whether SOL continues its bearish trend or begins a recovery.
ALSO READ: Crypto Market Drops Below $3 Trillion as Ethereum and Solana Lose Ground
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