Solana SOL tests support after rejection near $98 amid weaker on-chain activity

Solana's native cryptocurrency, SOL, is testing key support levels after failing to break through significant resistance, with analysts pointing to a mix of technical weakness and softer on-chain activity. The token is trading around $84 to $86, having retreated from a rejection near the $98 mark in early May.

The price action has formed what several analysts describe as a bearish flag pattern on the daily chart, a structure that often precedes further declines. Key support is now seen between $82 and $84, with a break below potentially opening the door to a test of the $78 to $80 zone. On the upside, reclaiming the $98 resistance level is widely viewed as necessary to signal a shift in momentum.

Supporting the cautious outlook, derivatives data shows weakening conviction. The funding rate for SOL perpetual futures turned negative this week, indicating greater demand for bearish leverage where holders of long positions pay those holding shorts. Open interest in futures markets has also declined, suggesting traders are reducing their leveraged exposure.

This price pressure coincides with a broader slowdown in activity within the Solana ecosystem. Data indicates weekly...