Solana Warning: Weak Structure, Falling DEX Activity

Two Solana charts showed pressure building across both price action and onchain trading activity. One pointed to a possible bearish breakdown on the technical side, while the other showed DEX trader participation falling back to a three year low.

Solana Risks Further Losses as Rising Wedge Breakdown Signals Trend Continuation

Solana appeared to be losing momentum on the two day chart shared by Crypto Patel, with price action pointing to a possible breakdown from a rising wedge pattern. The chart showed $SOL rebounding inside a narrow upward channel after a sharp selloff, but the structure looked weak as price pushed into resistance and began to roll over.

$SOL/USD 2D Chart: Source: Crypto Patel on X

Crypto Patel marked the setup as a rising wedge, which traders often treat as a bearish continuation pattern when it forms after a larger decline. In this case, the wedge developed below the 200 week moving average, while the broader trend remained under pressure. The chart also showed that Solana had already broken below an earlier trading range before forming the current rebound structure.

The highlighted area near the top of the wedge acted as a rejection zone, and the red projection on the chart pointed to downside expansion if support fails. That suggests the recent recovery may have been corrective rather than the start of a stronger reversal. As a result, traders watching this setup would likely focus on whether the lower wedge boundary breaks, which could strengthen the case for another leg lower.

Solana DEX Trader Count Drops to Three Year Low as Onchain Activity Cools

A chart shared by Sweep showed Solana DEX trader activity falling to its lowest level in about three years. The Dune chart tracked the number of wallets trading across Solana based decentralized exchanges and showed that activity, after surging through 2024, has now dropped back near the bottom of the range.

All Chains DEX Volume, Traders: Source: Dune, shared by Sweep on X

The chart suggested Solana’s trading activity cooled sharply after its earlier peak. Wallet count climbed fast during the strong expansion phase, then reversed and kept trending lower through the following months. That kind of move usually points to weaker participation, lower speculative activity, or both.

Still, the chart focused on trader count, not total value traded or broader network use. So while it showed a clear slowdown in DEX participation, it did not prove that every part of Solana’s ecosystem weakened at the same pace. Even so, the drop stands out because it signals that one of the network’s most watched activity metrics has returned to levels last seen years ago.