Solana (SOL) is currently facing a critical test as the cryptocurrency approaches the key resistance level of $180. Despite a remarkable surge in network activity, the price has remained subdued below this threshold, raising questions about whether the altcoin is gearing up for a bullish breakout or preparing for a deeper decline.

Over the past 24 hours, Solana’s blockchain has processed an impressive 64.5 million transactions, with 3.07 million returning users recorded, according to data from DefiLlama. This surge in network activity signals growing engagement and interest within the Solana ecosystem, even amid broader market uncertainties. Such on-chain metrics typically point to an active and thriving network, which often lays the groundwork for price appreciation.

However, despite this strong user engagement, Solana’s price has not mirrored the same enthusiasm. The token continues to consolidate below the $180 resistance level, failing to capture a corresponding bullish momentum. This disconnect between on-chain activity and price movement suggests caution among investors, who appear hesitant to commit until clearer technical signals emerge.

Adding to this narrative, Solana’s spot market volume has shown signs of cooling off, as noted in CryptoQuant’s Spot Volume bubble map. This data reveals a lagging spot volume compared to the surge in network use, highlighting a gap between increased user activity and actual trading demand. Such a divergence can sometimes indicate that while users are active on the network, investor confidence has yet to fully return.

Technically, Solana’s price is hovering near a crucial juncture. Analysts point out that SOL is on the brink of forming an inverted head and shoulders pattern on the daily chart—a classic bullish reversal formation if confirmed. However, the pattern remains incomplete as long as the price fails to break decisively above the $180 level.

The $180 resistance level thus represents the boundary between bullish and bearish market sentiment. A successful breakout above this price point would invalidate the bearish undertones and signal a potential long-term rally for Solana. Conversely, failure to breach this barrier could open the door for a significant retracement.

If Solana’s bulls cannot muster enough strength to push past $180 soon, the altcoin risks falling towards $106—a sharp drop that would reflect a shift back toward bearish dominance. Such a decline could overshadow the recent gains in network activity and cast doubt on the sustainability of Solana’s growth.

This situation underscores the importance of aligning fundamental strength with technical confirmation. While Solana’s rising transaction volumes and user counts point to increased utility and confidence in the network, price action remains the ultimate validator of market sentiment. Without a break above resistance, the recent network surge could be dismissed as a temporary spike rather than the start of a lasting rally.

In summary, Solana’s next major move hinges on the $180 price level. Traders and investors should watch this critical point closely, as a breakout could trigger renewed buying interest and set the stage for a sustained rally. On the other hand, a failure to overcome this resistance might lead to a deeper correction, despite strong on-chain fundamentals.

For now, the interplay between Solana’s growing network strength and its muted price reaction makes it a tense market to watch. A decisive move above $180 will be needed to confirm that the bulls are back in control and that the network’s growing activity can translate into positive price momentum.