Solana [SOL] extended its bearish run following a broader crypto market sell-off triggered by stronger-than-expected U.S. inflation data released Wednesday. September's Consumer Price Index rose 3.7% year-over-year, exceeding the 3.6% forecast and intensifying concerns about elevated interest rates.
The inflation report prompted treasury yields to climb and the U.S. dollar to strengthen, adding pressure to risk-sensitive assets including cryptocurrencies.
The macroeconomic headwinds have coincided with weakening activity across Solana's ecosystem. DeFi tokens operating on the network declined significantly, with Jupiter [JUP] and Raydium [RAY] posting losses of 9.4% and 10.6%, respectively.
Network Metrics Show Reduced Participation
Solana's transaction volume fell to $20.25 million, marking its weekly low, while daily active addresses declined to 3.74 million. These metrics suggest growing caution among investors responding to the macroeconomic uncertainty.
Continued declines in active addresses and transaction activity could indicate weakening ecosystem demand.
Price Action and Near-Term Outlook
SOL invalidated a key ascending trendline support around $111 and is currently trading below both its 20-day and 50-day exponential moving averages at $103. A break below the $100 psychological level could intensify downward pressure.
The near-term recovery will likely depend on broader market sentiment and renewed network participation. Persistent selling pressure and further ecosystem weakness could extend the current correction.
