**Solana (SOL) Struggles Near $130 as Network Activity Booms**

Solana’s native token, SOL, is facing a tough time holding above the important $130 price mark. Even though there’s a lot of positive activity happening on the Solana blockchain, the token is feeling pressure from the overall crypto market downturn and some ecosystem-specific issues. Investors are now asking: can Solana’s strong fundamentals outshine the current selling pressure?

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**Big Institutions Still Backing Solana**

Despite SOL’s recent price dip, big-name financial players are still building on the Solana network. Western Union has announced it will launch a US dollar stablecoin (USDPT) on Solana by mid-2026. Investment giant Fidelity has also added Solana to its crypto offerings. On top of that, R3, a group of global banks, is using Solana’s tech for tokenized assets.

These moves show that while the token’s price may be down short-term, long-term belief in Solana’s technology remains strong.

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**Price Drops While Usage Soars**

SOL’s price dropped about 11% over the last week, landing around $128. This slide matches a wider pullback in crypto, especially after the U.S. introduced new tariff threats that shook markets across the board.

But here’s the twist—while prices are down, Solana’s blockchain activity is way up. According to data from January 18, Solana hit 27.1 million active addresses in just one week—a 56% jump. Over 30 days, the network handled about 2.3 billion transactions, more than any other blockchain. In DeFi (decentralized finance), Solana’s Total Value Locked (TVL) has surged to $9.2 billion, putting it close to the $10 billion milestone.

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**Stablecoin Outflows Raise Concerns**

However, not all news is good. Around $2.7 billion worth of stablecoins left the Solana ecosystem in the last 30 days—a 17% drop. In comparison, Ethereum only saw a 1% decline during the same period.

Analysts see this as a warning sign. A class-action lawsuit against the Solana Foundation and Solana Labs may be making investors nervous. Also, companies holding SOL in their reserves—like Forward Industries—are reportedly sitting on over $700 million in unrealized losses this year alone, according to NS3.AI.

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**Major Upgrades Could Change the Game**

Despite short-term issues, experts see a bright future for Solana. Research firm Delphi Digital believes 2026 could be “the year of Solana,” thanks to a lineup of powerful upgrades aimed at making the network faster and more efficient.

Here are some of the key upgrades:

– **Alpenglow Consensus**: This major change could cut transaction finality time from 12-13 seconds to just 1 second.
– **Firedancer Validator**: Developed by Jump Crypto, this upgrade has already hit over one million transactions per second in tests and is partially live on mainnet.
– **DoubleZero Infrastructure**: Aimed at making communication between validators nearly instant, this upgrade could bring speeds similar to those used by Nasdaq or CME.

Solana also has strong developer support. A recent report from Electric Capital shows that the network now has around 17,700 active developers—many working on big projects like ChainLink, Wormhole, and Pyth Network.

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**Technical Levels to Watch for SOL**

Traders are closely watching key price zones for signs of a turnaround. The $132–$135 range is seen as critical resistance—SOL needs to break above this to start recovering. On the downside, support could be found between $122 and $126. If SOL falls below $120, more losses may follow.

Looking at short-term indicators:

– The Stochastic Oscillator shows SOL is oversold, which could mean a bounce is coming.
– However, SOL is still trading below its 50-day moving average ($132).
– The Supertrend indicator continues to signal a bearish trend.

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**What’s Next for Solana?**

In the coming weeks, all eyes will be on whether Solana’s strong network activity and upcoming upgrades can help stabilize its price. If SOL can reclaim and hold above $132, it could be a signal that confidence is returning. But if legal troubles and stablecoin exits continue, the token may face more downside ahead.

For now, SOL is at a crossroads—strong tech and big plans ahead, but battling short-term market challenges.