- Solana price has broken key support levels, signaling a potential extended downturn.
- The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicate continued bearish momentum.
- On-chain metrics such as volume, Total Value Locked (TVL), and active addresses show a significant decline.
This article provides a concise analysis of Solana’s current market status, highlighting crucial technical indicators and on-chain metrics.
Solana Faces Continued Bearish Pressure
Solana’s price has experienced a sharp decline, falling 12.6% in the last 24 hours to $122.82. This drop reflects broader market panic and has pushed the asset below critical support levels. As the market faces ongoing volatility, investors are exercising caution, contributing to a noticeable decrease in on-chain activity.
Technical Indicators Signal Further Declines
Analyzing Solana’s price chart reveals a descending triangle pattern, which typically suggests further downward movement. Recent price action has seen a fake breakout above resistance, followed by a strong bearish move. The 50-day EMA at $157.14 and the 200-day EMA at $138.86 both lie above the current price, confirming a bearish trend. The Relative Strength Index (RSI) is at 29.43, indicating that the asset is oversold and may see a temporary bounce, though the overall outlook remains negative. The Chaikin Money Flow (CMF) is also in negative territory at -0.10, supporting the view of increasing selling pressure.
On-Chain Metrics Display Weakening Network Activity
Solana’s on-chain metrics further validate the bearish outlook. Data from Solscan shows a drop in on-chain volume to 12.082 million, highlighting reduced demand and usage of SOL. This downturn in volume has directly impacted the Total Value Locked (TVL) on the network, leading to its decline.
Decreasing Active Addresses Indicate Investor Caution
The number of active addresses on the Solana network has decreased from 1,350,045 to 1,264,296 over the past week. This reduction in active addresses, coupled with declining network engagement, underlines the bearish sentiment surrounding Solana. The overall market sentiment remains cautious, as evidenced by the broader cryptocurrency market’s pullback, influencing Solana’s price trajectory.
Conclusion
The current analysis shows that Solana is facing substantial bearish pressure. Technical indicators and on-chain metrics both point toward a continued decline. While there may be short-term bounces due to oversold conditions, the prevailing trend remains bearish unless the price can break above key EMAs. Investors should remain wary and keep a close eye on further market developments and on-chain activity.
