Solana just recorded its tenth consecutive month with a decline in price, a streak that began after an October breakdown. July closed down 1.1%, leaving investors who bought near the $250 peak deeply underwater as SOL approaches a key support level around $60.
Yet, the price slump isn't mirrored by Solana's on-chain metrics. The network activated the SIMD-0286 upgrade on July 29, boosting its compute limit from 60 to 100 million, allowing it to better handle surges in demand without slowing down transactions.
This improvement also eased fee pressure: since the upgrade, the 90th percentile transaction fee dropped by 30%, from 29,800 to 20,800 lamports, signaling enhanced throughput and more efficient capital use. Token Terminal reports that Solana processed 8.7 billion transactions last month, its highest volume in four months.
Signs of a Potential Turnaround
Despite price struggles, Solana’s fundamentals are strengthening. An analyst cited by AMBCrypto points out that SOL is forming a breakout-and-retest pattern reminiscent of those preceding massive rallies in 2021 and 2023, which saw gains of 2,500% and 3,600%, respectively. The current setup suggests a potential similar rally in the 2026-2027 cycle.
Adding to this is Solana's price behavior against Bitcoin. Historically, August and September are weak months for BTC, increasing chances for capital to flow into altcoins like SOL. The SOL/BTC pair has remained below 0.002, but a decisive breakout here might spark a broader trend reversal.
The network upgrades and strong transaction activity present a compelling case that Solana’s on-chain ecosystem is gaining momentum, even if the price chart tells a different story.
This content is for informational purposes and does not constitute financial advice.
