#TrumpNewTariffs Here is an analysis of Solana (SOL) based on recent market data as of February 21, 2026. The analysis covers price action, technical indicators, and market dynamics.

Market Overview: Technical Rebound Meets Strong Resistance

Solana is currently trading around $84.36 after experiencing a 1.02% increase in the last 24 hours . This follows a drop to the $78 support level, which triggered a short-squeeze rebound . Despite this bounce, the asset remains under significant selling pressure, trading below all major short-term (MA-20), medium-term (MA-50), and long-term (MA-200) moving averages . Trading volume has also contracted by 21% compared to the 30-day average, suggesting that the current rally lacks strong conviction and may be fragile .

Technical Analysis: Bearish Structure Intact

The broader market structure for SOL remains bearish. The price recently broke below a long-term ascending trendline, shifting focus to lower support levels .

· Key Levels to Watch:

· Immediate Resistance: $87 - $88.50 . A weekly close above $88.50 is needed to suggest a potential bullish reversal .

· Critical Support: $78 - $80 . This area is the immediate defense for bulls.

· Major Downside Targets: If the $78 support breaks, the next key levels to watch are $74.11 and then $50.18 .

· Indicators: The Relative Strength Index (RSI) is in the oversold territory, which could sometimes precede a bounce . However, the Moving Average Convergence Divergence (MACD) and the Average Directional Index (ADX) continue to confirm a strong bearish momentum, indicating that sellers are still in control .

Market Dynamics: Strong Fundamentals vs. Weak Price

Solana is currently exhibiting a classic divergence between its weak price action and its strong network fundamentals .

· On-Chain & Institutional Strength: Despite the price drop, the Solana ecosystem is showing robust activity. Decentralized application (dApp) revenue exceeds $3 million over 24 hours, and DEX volume is over $2.6 billion . The Total Value Locked (TVL) in Real World Assets (RWAs) on Solana has rea