Solana
Why Solana Network Activity Isn’t Always Good News for SOL Price, According to Traders
- Activity on the Solana network has increased, but the price of SOL has fallen
- SOL popularity declined, but sentiment remained positive
by Solana [SOL] The ecosystem has grown steadily over the past few months due to the network’s growing popularity. In fact, due to this surge in interest, the number of transactions carried out on the Solana network has also increased significantly.
Good times for network activity
According to some analyses, the Solana network’s recent dominance has been such that it has outperformed all other networks on this front.
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Despite the aforementioned increase in activity, SOL price is down 3.13% over the past 7 days. This suggests that the performance of the Solana ecosystem and the price of SOL may lose correlation with each other.
This is also not the first time something like this has happened. For example – On April 11, there was a massive increase in transactions on the Solana network. However, price activity moved in a completely different direction and fell by 20%.
Source: Artemis
The value of SOL continued to move sideways for some time, before registering a trend reversal. After May 15, SOL price was followed by a bullish surge, which caused SOL price to surpass its previously established lows and highs. At press time, SOL was trading at $169.23.
Even though the recent SOL price correction was not significant enough to break the downtrend, if the bearish pressure persists, it could lead SOL to reach the $152.48 level.
At the time of writing, the RSI (Relative Strength Index) for SOL had fallen to 43.91, implying that the bullish momentum around SOL has diminished significantly. The CMF (Chaikin Money Flow) for SOL also decreased to -0.03 – a sign of weak capital inflows.
Source: Commercial View
Social volume takes a hit
One factor that could seriously influence the price of SOL in the future could be its popularity on social media. AMBCrypto’s analysis of Santiment data revealed that social volume around SOL has decreased significantly over the past few days.
This indicates that the number of comments and replies on social media around Solana has decreased significantly. SOL’s decreasing popularity could negatively affect its price action on the charts.
Read by Solana [SOL] Price prediction 2024-25
On the contrary, the weighted sentiment of SOL recorded a slight increase, implying that the conversations that took place around SOL were positive in nature.
If weighted sentiment remains positive as social volume increases, SOL’s price action could take a positive turn.
Source: Santiment