SOL Price Weakness Deepens Despite Strong Fundamentals: Can a Key Support Trigger a Rebound?

The SOL price continues to face heavy pressure as Solana-linked treasury companies stock prices are sliding badly, which is raising concerns about weakened buying demand. While this trend has been one of the factors that has weighed on sentiment, but despite that its on-chain data, institutional flows, and historical technical indicators still reflect underlying resilience. With mixed signals emerging, December 2025 could become a decisive month for Solana crypto.

Solana Treasury Stress Adds Pressure to SOL Price

An analyst highlighted that treasury entities such as Forward Technologies Inc., Sol Strategies Inc., Sharp Technology Inc., and DeFI Development Corp. are taking fresh declines. This weakness, according to commentary from analyst Ted Pillows, hints that it is one of the factors contributing to the muted SOL price in last couple of weeks, as it suggests fading buyer interest.

However, a strong counterargument has surfaced, noting that these treasury declines primarily indicate that venture capitalists are underwater and not the Solana chain itself. This distinction is important, as it separates financial stress at corporate holders from the operational performance of the blockchain.

On-Chain Metrics Show Solana Remains Strong

Despite SOL price retreating, Solana crypto’s fundamentals aren’t at a level to laugh at, in fact, they still remain firm. According to DefiLlama’s weekly Solana chart data, Solana holds $8.56 billion in TVL, down from its $13.22 billion ATH only, but still strong relative to market conditions. 

Meanwhile, the Solana stablecoin market cap stands at $14.96 billion, only slightly below the $15.08 billion ATH, which clearly highlights that continued stablecoin confidence is somewhat equivalent to growing liquidity on the chain.

However, one thing cannot be denied that their active addresses have fallen from yearly peaks of 33.63 million to 15.17 million, yet this still shows significant engagement despite broader market volatility. 

Beyond active addresses, more encouraging are the weekly transaction counts that show that last week of November remains robust at 415.57 million transactions, signaling that usage remains consistent even during corrective phases.

Institutional Interest Through SOL ETF Remains Positive

Beyond on-chain data, the institutional footprint is increasing via SOL ETFs. Looking at SOL ETF data from SoSoValue, inflows remained positive from late October to late November, with only minimal outflows. Whereas, cumulative Net Inflows are now at $605.04 million across six active sponsor products. Combined net assets exceed $790 million, with Bitwise holding the largest share.

This growing institutional footprint aligns with broader commentary made by Cryptoquant CEO and founder Justin Sun, who has stated that liquidity is drying up for most altcoins. However, those securing new liquidity channels, especially ETFs, are positioned more favorably for long-term survival.

Technical Indicators Suggest a Potential Rebound

From a technical perspective, the SOL price USD is now testing a key support trendline that historically triggered strong rebounds since 2023. This price zone has repeatedly acted as a base for renewed momentum.

Additionally, the TD Sequential indicator on the weekly chart is flashing a buy signal, too. Historically, this system has accurately identified Solana trend reversals since March 2023, per analyst ALi Martinez. If strength emerges from this region, a move toward $270, which is a 100% rise, remains possible, while a 120% advancement toward the $295 ATH also fits within the current SOL price forecast structure.

Despite treasury concerns, the larger body of data suggests that Solana’s blockchain activity, institutional commitment, and technical structure continue to underpin a constructive long-term narrative for SOL price.