SOL Tests $75 Support as Solana Proposes Major Inflation Cuts to 1.1% by 2031

Woofun AI reports that SOL traded near $75 on August 15, a price point that coincides with Grayscale Head of Research Zach Pandl's projection that Solana's annual supply inflation could fall to roughly 1.1% by 2031 if proposed changes are adopted.

The asset remains constrained by immediate technical resistance, sitting less than 1% above the 0.382 Fibonacci retracement near $74.5. Overhead, the descending blue trendline intersects the 50-day SMA near $75.9, while the 100-day SMA sits at $77, creating a resistance band separated from support by less than $2.50. The structure's lower bound has held near $71.8, an area SOL revisited around the end of July and again in early August before buyers reclaimed Fibonacci support and pushed prices back into the $76 area.

However, the rebound stalled below the descending trendline as candles narrowed, signaling compression between support and resistance.

Upside potential hinges on breaking this congestion; a daily close above the full resistance band would open room toward the 0.5 Fibonacci retracement close to $79. The next cluster of targets lies higher, sandwiched between the 200-day SMA at $82 and the 0.618 Fibonacci level near $83.5. Conversely, a close below Fibonacci support would erase the recent reclaim and expose the horizontal triangle base. If that floor fails, the 0.236 Fibonacci level at $69 becomes the nearest marked support, though recent intraday crosses have closed back inside the range, leaving confirmation dependent on the daily close and successful retest.

Woofun AI data shows that the fundamental shift relies on two mechanisms to slow SOL supply growth, moving economics away from issuance and closer to usage. Under this model, fewer tokens would be distributed through inflation, while heavier demand for network resources could produce a larger burn. Pandl's estimate rests on the conditional premise that lower supply growth may help if demand holds, balancing reduced issuance against the need for sustained network activity to compensate for lower staking rewards.

The chart currently tests buying demand against these structural constraints, while the tokenomics debate examines whether Solana can rely less on inflation without weakening participation. This divergence highlights a critical tension: technical recovery must occur alongside a successful transition to a usage-driven supply model to mitigate dilution risks.