Solana’s SOL token struggles to break $140, down 30% in the past month, underperforming altcoins amid market uncertainty. Declining US economy confidence and AI sector valuation concerns add to investor worries. Major consumer companies like Target and Home Depot cut sales forecasts post-government shutdown, further clouding Fed monetary policy clarity.

SOL’s price pressure due to risk aversion and increasing competition from other altcoins like XRP, LTC, and LINK. Bearish leverage demand on SOL futures rises, with negative funding rates indicating further price decline expectations. SOL futures open interest drops, while monthly futures premium hits 0%, signaling bearish market sentiment likely to persist.

Solana network sees TVL drop to $10.5 billion, down 20% in a month, with blockchain revenue hitting a low. Ethereum fees only down 5% in the same period. Solana maintains lead in active addresses and transactions, showing a 13% activity increase compared to Ethereum’s 15% decline. SOL rebounds 14% from Friday’s low, but sustainability remains uncertain amidst fragile derivatives market and weak network fees.

Read more at Cointelegraph: SOL Rallies But It’s Too Soon To Call A Trend Change