Solana price has had a tough week, dropping around 6% despite trading above $200 earlier this month. However, let’s look at the bigger picture and see if it looks brighter.
Over the past 30 days, Solana has gained 20.1%, making it one of the strongest performers among top tokens.
Beyond price, its DeFi ecosystem is expanding, retail selling pressure is easing, and traders are heavily betting on a rebound. If this momentum holds, Solana could be on track to challenge the $250 mark soon.
DeFi Growth Shows Strong Network Demand
One of Solana’s biggest strengths right now is its fast-growing DeFi ecosystem. DeFi, or decentralized finance, refers to apps that let people trade, lend, or earn interest directly on-chain without using banks or centralized exchanges.
In July, active addresses on Solana DeFi apps grew by 12.3%, showing more users are interacting with its protocols.
At the same time, the total value locked (TVL) on Solana jumped from $9.3 billion in early April to $13.4 billion by the end of July.
That’s a 44% increase in just three months. This puts Solana firmly in second place among DeFi chains, behind Ethereum but well ahead of Tron.
This rise in TVL means more money is being staked, borrowed, and traded on Solana. High DeFi usage often brings more fees and rewards to validators and users, making the network more attractive.
A strong on-chain ecosystem builds long-term demand for SOL coins, which could help price recover once market sentiment turns.
Spot and Derivatives Data Show Sellers Slowing
For several weeks, smaller investors have been pulling Solana from exchanges, creating heavy buying pressure.
Last week, there were $347 million in net outflows, meaning more the cryptocurrency was being bought than sold.
When outflows increase, it means more SOL is hitting exchanges, reducing immediate sell pressure. Fewer coins for sale typically make it easier for the Solana price to climb once demand kicks in.
In the derivatives market, where traders bet on future prices, the mood is clearly bullish. $2.48 billion worth of long positions are open compared to $1 billion in shorts over the next 30 days.
This shows that more traders expect Solana’s price to rise than fall. If price begins to climb, shorts could be forced to buy back, creating a short squeeze and adding fuel to an upward rally.
The combination of slowing retail selling and bullish futures positioning gives Solana a strong foundation for a potential breakout if buying volume picks up.
Momentum Indicators Suggest a Possible Trend Reversal For Solana Price
Beyond trading volumes, momentum signals are starting to show that sellers are losing control.
The bull-bear power (BBP) indicator, which compares the strength of buying pressure against selling pressure, is still negative for Solana price. This means sellers are technically stronger right now.
However, the bearish strength is fading, with the BBP moving closer to neutral. If buyers push harder, this indicator could flip positive.
A positive BBP often signals the start of a new uptrend, where buyers dominate and push prices higher.
Another important metric is the Money Flow Index (MFI). This indicator measures how much money is moving in and out of Solana.
The MFI had been falling for weeks, showing exchange inflows were bigger than outflows. But now it has flattened around 52, suggesting that inflows have slowed and new money may soon return. If MFI moves above 60, it would confirm fresh buying power coming into the market.
Together, these momentum signals hint that Solana could be nearing a trend reversal, especially if spot and derivative buying picks up further.
Key Levels To Watch for the Next Solana Price Rally
Technically, while Solana pricewas holding strong support near $170 yesterday, as the broader market dwindled, the crypto fell to $169.
That said, if bulls can push the price above $189, the next target is $206, a critical Fibonacci retracement level from its last rally.
A breakout above $206 would likely invite more buyers and open the door to a test of $250.
Twitter (now X) analysts are also voicing similar price targets.
However, having failed to break these resistance levels, Solana price revisited $174 earlier today, before attempting another move higher.
For now, DeFi growth, improving flows, and weakening sell pressure all suggest Solana’s time may be coming; buyers just need to tip the scales.
Source: https://www.thecoinrepublic.com/2025/08/01/solana-price-eyes-250-will-this-help-revival-amid-a-grim-market/