The price of $SOL has experienced a significant correction, falling over 20% to around $165. This drop has generated much conversation and, of course, questions about its future.

What is driving this drop in the price of Solana?

There are several theories and factors that could be behind Solana's current underperformance:

• General Market Correction: After a significant bullish push, the overall market is experiencing a pullback, and Solana is no exception.

• Underperformance Compared to Rivals: Solana has shown underperformance compared to other cryptocurrencies like Ethereum (ETH) and SUI in recent months.

• Speculation and Competition: Some analysts speculate that Solana's 'moment' may have passed, with new chains like BASE gaining ground and attracting attention.

• Strategic Focus Shift: Solana, along with its co-founder Toly, is now prioritizing developers and seeking to attract 'serious' startups to the ecosystem, rather than focusing solely on memecoins, which previously drove much of its volume. This change, while positive in the long term, may be having a short-term impact.

Despite this correction, it is important to highlight that Solana maintained solid on-chain activity during the first half of 2025, with an average of between 3 and 6 million active daily addresses, and even spikes above 7 million at the end of January and early May. Its market capitalization remains robust, exceeding $89 billion, positioning it as the sixth-largest cryptocurrency.

Technical Analysis: What do the charts tell us?

Current technical indicators reflect a bearish trend. The price of Solana has broken below moving averages, the Relative Strength Index (RSI) is declining, signaling weakening momentum, and the MACD shows a recent bearish crossover. If the support level near $163 breaks, we could see further declines. The daily RSI is around 54 points, indicating a neutral condition, while the MACD shows a recent bearish crossover, reinforcing a consolidation or correction scenario for the beginning of August.

Predictions for August and the Rest of the Year: Where is Solana headed?

July closed with strong volatility for SOL, with its price retreating to a range between $176 and $181 at the end of the month after almost reaching $205.

For August 2025, Solana faces two main scenarios:

• Consolidation or Pullback Scenario: If it fails to hold current supports, the price is likely to seek the $160 to $170 zone again to find solid support. The most important support is around $170. If this level were to break forcefully, the price could drop towards $150, an accumulation zone observed in May and June. The moving averages (50 and 200-day SMAs at $168 and $155 respectively) suggest that the strength of the bullish trend may be weakening.

• New Bullish Push Scenario: On the bullish side, immediate resistance ranges between $190 and $195. A sustained breakout above this level, accompanied by a significant increase in trading volume, could lead SOL to seek $210 as the next technical target. A bearish ABCD harmonic pattern analysis on SOL's daily chart suggests that the CD leg could extend to $216.56, representing an increase of approximately 28% from current prices.

Despite short-term fluctuations, the 'golden cross' remains in play on the Solana chart, sustaining a bullish outlook in the medium term. The long-term sentiment for SOL remains positive, and the 200-day moving average, close to $161.88, is considered a crucial support to maintain the bullish structure. Although consolidation phases are possible, the technical outlook appears favorable in the medium term.

What Opportunities Could This Moment Represent?

In such a dynamic market, corrections often present opportunities. Solana's drop to $165 from its recent peaks could be seen as a buying opportunity for those who believe in its medium- and long-term potential, especially if supports hold and bullish signals, such as the harmonic pattern, are confirmed.

Within the Solana ecosystem, projects are also emerging that seek to capitalize on its infrastructure. One mentioned example is Snorter, a Telegram bot designed for fast trading of memecoins on Solana. This bot offers features like MEV protection, honeypot checks, and staking with an APY of up to 169%. Snorter has raised over $2.7 million in its presale, priced at just $0.099, indicating interest in tools that optimize operations in this ecosystem.

Analysts' Perspective:

• Luis Blanco (BeInCrypto) highlights the volatility of July and outlines the two main scenarios for August: a possible search for $160-170 or a push towards $190-210 if resistances break. He emphasizes that the ETF effect has already faded and that external factors such as Fed decisions and Bitcoin's performance will be crucial.

• Simon Dumoulin (InvestX) is more bullish in the short term, emphasizing a harmonic ABCD pattern that could lead Solana to $216.56, suggesting that the technical outlook in the medium term is favorable.

In summary, Solana's path in August will be decisive, navigating between consolidation and a potential new push. The long-term sentiment remains optimistic, making this a crucial moment for investors.

What do you think about Solana's future? Do you believe that $165 is a good entry point or that the correction will continue? Let us know your comments and share your perspective with the community! If you liked this article and found it informative, don't forget to share it and follow us to stay updated on the latest news and market analysis! Stay tuned!

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