Solana price faces the risk of a drop despite the addition of 8 million retail investors.

Solana price has been trending upwards recently, but short-term risks are becoming increasingly apparent. SOL has formed a rising wedge pattern since the beginning of the month, a pattern that often precedes a price correction.

Although retail investors remain actively participating, the current pattern suggests that SOL is likely to experience a decline, potentially weakening recent bullish signals.

Solana investors clash with each other.

on-chain activity shows strong growth on the Solana network. Since the beginning of the month, the number of addresses participating in transactions on Solana has surged. At its peak, more than 8 million new addresses were created in just 24 hours.

This increase indicates a significantdemand for SOL . New addresses often bring in new Capital , boosting liquidation and network usage. This growth reflects the increasing appeal of the Solana ecosystem, particularly driven by DeFi projects, memecoins, and large-scale transaction processing applications that attract many new users.

Want more insights on Token like this? Sign up for editor Harsh Notariya's daily Crypto newsletter here .

Besides the sharp increase in the number of users, data on general market trends reveals a different development. Position changes on the exchange show that existing investors are strongly influencing price movements. Buying pressure from long-term investors is weakening, meaning new Capital inflows no longer have the same strong impact as before.

As buying pressure diminishes, selling pressure begins to prevail. This movement indicates that manylong-term SOL holders are reducing their investment positions or preparing to sell. When old supply exceeds new demand, prices tend to weaken, and the likelihood of SOL breaking out of its current pattern increases.

SOL prices are facing a correction.

Solana price is currently fluctuating around $144 at the time of writing, and is within a rising wedge pattern formed over the past few days. According to this pattern, if the trend worsens, SOL could fall by approximately 9.5%, bringing the price target to the $129 region if the pattern fails.

This bearish prediction is also consistent with weakening momentum indicators. If the pattern breaks through the support zone, SOL is likely to fall to the $136 region first. If it fails to hold this zone, the price could fall close to the $130 mark, where buying pressure may emerge to stabilize the price, especially in a cautious market.

However, a bearish scenario is not necessarily guaranteed. If investor sentiment becomes optimistic again and selling pressure eases, SOL could bounce from the lower trendline of the wedge pattern. If it breaks above $146, the uptrend could become more pronounced. At that point, Solana price could even head towards the $151 area, thus refuting the bearish trend mentioned above.