Solana active addresses hit new high – So why is SOL still falling?

• SOL-linked addresses have surged past 14.6 million, with the transaction count hitting a YTD high.
• This surge has triggered significant liquidity outflows, though some investors see it as a buying opportunity.

Solana [SOL] on-chain activity has spiked, but the asset’s price hasn’t followed suit—dropping by $1.14 despite the increase.

At the time of writing, Santiment noted a rise in Active Addresses, which climbed to 14.63 million in the past 24 hours.

Source: Santiment

Typically, a sharp rise in Active Addresses, coupled with a 12.74% increase in volume to $3.75 billion, would hint at an incoming rally. However, as AMBCrypto observed, the opposite occurred in the past day.

In fact, the rally outlook remains weak, with on-chain sentiment suggesting a likely downward stretch.

SOL investors return—But to sell

A wave of Returning Users has emerged in the market, with Artemis reporting that 1.1 million previously inactive users re-engaged in the past day.

This resurgence comes amid weakening sentiment, suggesting many of these users are likely selling rather than accumulating.

Source: Artemis

This “rebirth” coincided with a sharp drop in Total Value Locked (TVL) as on-chain activity declined.

Data from DeFiLlama shows that over $91 million worth of SOL exited the market in the past day, as investors began withdrawing previously deposited tokens from Solana-based protocols.

This trend matches the re-entry of users who may have initially staked their assets but are now returning to sell, indicating a shift from long-term holding to a short-term outlook.

Daily Transactions spiked in the past 24 hours, reaching a new peak. Year-to-date (YTD) transaction count has now climbed to 116.66 million, while DEX activity also crossed a key milestone, surpassing $16.6 billion, according to Artemis.

Spot investors see opportunity in dip

In contrast, spot market investors have taken a different path, accumulating more SOL over the past two days.

At the time of writing, they had spent $16.55 million purchasing SOL, according to CoinGlass.

Source: CoinGlass

Similarly, Artemis reported that Solana’s Bridge Netflow—which tracks SOL bought from other ecosystems—totaled $114,000, suggesting growing cross-chain interest.  

This inflow points to increased appetite from external investors, who may inject more liquidity into the Solana market.

A breakout may happen

Technical analysis on the 4-hour chart shows a strong possibility of a market rally in the near term.

Currently, SOL is trading within a symmetrical triangle, a pattern that typically precedes a breakout.

If a breakout occurs, SOL could retest the $158 level. With heightened momentum, prices could climb further by $10, reaching $168.

Source: TradingView