FX.co ★ Solana blockchain faces challenging times

While Bitcoin teeters near the $103,000 mark — with growing risk of dropping below $100,000 — many experts have turned their attention to the Solana network, where a sharp decline in user activity has been recorded.

User engagement within the Solana blockchain has fallen to its lowest level in a year. The number of active wallets has dropped to 3.3 million, nearly three times lower than the peak levels seen in January. It's evident that the waning popularity of many secondary altcoins has negatively impacted overall user participation.

Despite this decline, Solana continues to diversify its ecosystem. The DeFi sector is showing signs of growth, with projects built on Solana increasingly attracting investor attention.

At the same time, Solana's developers are working to improve the stability and scalability of the network. Recent protocol updates have focused on increasing throughput and reducing transaction fees, making the platform more appealing to both developers and end users. However, one of the network's most critical challenges remains — periodic congestion during peak activity periods, which still poses risks to overall performance.

Ultimately, the future of Solana will depend on its ability to adapt to changing market conditions and to deliver innovative solutions that attract new users while retaining existing ones. Sustainable DeFi growth, expansion of the NFT market, and continuous technical improvements will be key drivers of Solana's success in the long term.

Trading recommendations

Bitcoin Buyers are currently targeting a return to $105,300, which would open the way to $107,900, and then to $111,300. The ultimate upside target remains the $113,500 area — a breakout above which could signal a renewed bullish market. If Bitcoin declines, buyers are expected to appear around $102,400. A drop below this level could quickly send BTC toward $99,400, with the final downside target near $95,900.

Ethereum A firm hold above $3,529 opens a direct path toward $3,664, with the ultimate bullish target at $3,818. A breakout above that level would confirm strengthening bullish momentum and rising investor interest. If Ethereum pulls back, buyers are likely to emerge near $3,390. A decline below this support could quickly drive ETH down to $3,279, with the lowest target around $3,181.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.