Solana Price Breaks Key Support as Network Activity Slumps -- Will Bears Trigger a Short Squeeze Next?

Solana's price broke through a key support level as network activity cooled, raising questions about a possible bear-driven reversal. SOL trades near 79.5 dollars after failing to escape the wide 76 to 90 dollar range that has defined trading for months. On-chain activity has waned, with active users down from almost 3 million earlier this year to about 1.9 million recently, signaling weaker engagement across the ecosystem and a softer derivatives market. Liquidity remains concentrated above current prices, with DeFi data showing declining DEX volume and a pullback in open interest from near 3 billion to around 2.1 billion.