Solana (SOL) showed signs of fatigue after a big pump of 40% in July! On-chain activity plummeted by 16%, and the $180 key support level faces a life-or-death test.

Solana(SOL), as a strong-performing large cap altcoin, surged during the market rally in July, reaching a cycle high of $206.19 on July 22, with a monthly increase of up to 40%. Its on-chain ecosystem also exploded, with the total value locked in DeFi(\TVL), decentralized exchange(DEX) trading volume, and network revenue all significantly increasing. However, entering August, the $SOL price fell back to around $180, with on-chain data showing signs of fatigue: the number of active addresses plummeted by 16%, TVL shrank by 8%, and the network's growth momentum weakened. The technical aspect shows that the 20-day moving average at $178.25( dynamic support level) has become a watershed for bulls and bears, and if it loses support, it may dip to $171.

SOL's explosive rise in July ignites the ecosystem Driven by the rise of Bitcoin (BTC), $SOL achieved an astonishing 40% increase from July 1 to 22, strongly breaking through the psychological barrier of $200. The surge in coin price directly stimulated Solana's on-chain activity:

• DeFi TVL Approaching Billion Threshold: The total locked-up value of the network (TVL) is currently reported at $9.85 billion, with a monthly increase of 14%, reflecting continuous capital inflow into lending pools and asset management vaults.

  

(Solana TVL | Source: DefiLlama)

• DEX volume surges: In the past 30 days, the on-chain Decentralized Exchange ( DEX ) has seen a big dump in trading volume, increasing by 30%. In July alone, the trading volume has surpassed $82 billion, indicating strong user trading demand.

  

(Solana monthly DEX volume | Source: DefiLlama)

• Network revenue rises: According to DefiLlama data, Solana has generated $4.3 million in revenue from July to date, which is a 13% rise compared to June's $3.81 million, verifying the prosperity of the ecosystem.

  

  (Solana Monthly Revenue | Source: DefiLlama)

August Fatigue Begins to Show: Active Addresses and TVL Both Decline As the $SOL price fell from its peak to $180, key on-chain indicators for Solana showed significant cooling.

(Solana Daily Active Addresses | Source: Artemis)

• Active Addresses Decreased Sharply: According to Artemis data, the daily active addresses over the past 7 days have experienced a big dump of 16%, indicating a significant decline in user participation and on-chain interaction activities, which may suggest a weak start to the new trading month.

• TVL High Reversion: The total locked value ( TVL ) decreased by 8% over the week, indicating that users are withdrawing funds from DeFi protocols or that the assets held are facing market depreciation pressure, putting short-term pressure on Solana ecosystem funds.

  

  (Solana TVL | Source: Artemis)

$178 key moving average becomes the battleground for bulls and bears $SOL has been continuously falling recently, bringing it close to a key technical support level:

• 20-day Moving Average Defense Battle: The current price ($180.51) is closely tied to the 20-day Exponential Moving Average ($178.25. If this dynamic support line is effectively broken (especially accompanied by a decrease in volume), it may open up further downside potential.
• Potential Target Level: If selling pressure intensifies, $SOL may dip to $171.78 to seek support.
• Upside Opportunity: If market sentiment reverses and holds above the support level, the first target for the rebound is $186.40, and after breaking through, it is expected to challenge the $190.47 resistance zone again.

Conclusion: Solana)$SOL( is facing the test of "prosperity leading to decline" after its glorious July. The sharp drop in on-chain activity and the shrinkage of TVL raise alarms, while the technical battle at the $178 level will become a short-term trend indicator. Although the ecological fundamentals remain competitive, if the key support level cannot be held, investors should be wary of deeper pullback risks. Whether August can regain the upward momentum depends on the outcome of the tug-of-war between bulls and bears in the $180 area.