Solana Price Rally Continues as DeFi Ecosystem Thrives Despite User Activity Drop

Solana is showing promising bullish signals, currently trading above $186 as it rides alongside broader market optimism following recent U.S. economic data releases. This upward movement mirrors Bitcoin’s recovery above $107,000, suggesting renewed investor confidence in the crypto market.

Despite a slight retreat from the record $13.68 billion in futures Open Interest, Solana’s market interest remains robust with OI averaging around $12.39 billion. These healthy pullbacks are typical in bull markets, creating fresh entry opportunities for investors before the next leg up.

What’s particularly impressive is Solana’s DeFi ecosystem growth. The Total Value Locked (TVL) has surged by a remarkable $1.8 billion in just one month, reaching $11.7 billion. This substantial increase indicates strong investor conviction in Solana’s long-term potential and technological capabilities.

However, not all metrics paint a rosy picture. On-chain activity has declined significantly, with active addresses dropping by over 62% to 2.26 million from 6 million in early June. This dramatic decrease in user engagement could be a warning sign amid the price rally.

From a technical perspective, Solana appears poised to test the $220 level in the short term, with potential for pushing toward $250 if momentum continues. The price remains comfortably above key moving averages - the 50-day EMA at $187, 100-day at $177, and 200-day at $171 - reinforcing the bullish outlook.

While the current trajectory looks promising, traders should remain cautious of potential corrections below $200, especially with macroeconomic uncertainty surrounding the Fed’s upcoming interest rate decision. September has historically been a challenging month for crypto assets, and current market conditions may not be immune to seasonal pressures.

For those watching key levels, resistance at $220 and $250 represent important thresholds, with Solana’s all-time high of $293 remaining the ultimate target for bulls. The Relative Strength Index at 56 points toward potential continued strength without yet reaching overbought territory.