SOL’s Bear Flag Targets $86 Amid Weakening Onchain Activity
Solana’s native token SOL dropped 52% between September 18 and November 21, losing key long-term support levels and potentially signaling a deeper correction below $100. The total value locked (TVL) on Solana fell over 34% to $8.67 billion, a six-month low, mainly driven by a sharp decline in Jito liquid staking and significant decreases in other major decentralized applications. Network metrics further show declining activity, with network fees, active addresses, and transaction counts all down over the past week, indicating reduced demand for SOL. Solana-based memecoins also suffered, experiencing double-digit losses and a 95% drop in decentralized exchange (DEX) volume from January highs. Technically, SOL is trading below a bear pennant formation, suggesting a further decline, with potential support at $118 but risks of falling to the $90–$100 range or lower if bearish momentum continues.
