- Although activity on the Solana network increased, the price of SOL fell.
- SOL’s popularity has waned, but sentiment remains strong
Solana [SOL] The ecosystem has grown steadily over the past few months due to the growing popularity of the network. In fact, this increased interest has also led to a significant increase in the number of transactions taking place on the Solana network.
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According to several analyses, the Solana network has been very dominant lately, outperforming all other networks in this regard.
Source: X
However, despite the aforementioned surge in activity, the price of SOL has fallen 3.13% over the past seven days, suggesting that the performance of the Solana ecosystem and the price of SOL may be becoming less correlated with each other.
This is not the first time something like this has happened: on April 11, for example, the Solana network saw a huge increase in transactions, but the price movement went in a completely different direction, dropping by 20%.
Source: Artemis
The price of SOL continued to trade sideways for quite some time before recording a trend reversal. Starting on May 15, the price of SOL experienced a surge in bullish momentum, which pushed the price of SOL above its previously established lows and highs. At the time of writing, SOL is $169.23.
Although the recent correction in SOL price has not been large enough to break the bearish trend, if the bearish pressure continues, SOL could reach the $152.48 level.
At the time of writing, SOL’s RSI (Relative Strength Index) has fallen to 43.91, indicating that SOL’s bullish momentum has weakened significantly. SOL’s CMF (Chaikin Money Flow) has also fallen to -0.03, indicating low capital inflows.
BTC/USD daily chart. Source: Trading View
Social volume takes a hit
A factor that could have a significant impact on SOL’s price in the future could be its popularity on social media: AMBCrypto’s analysis of Santiment data revealed that social volume around SOL has dropped significantly over the past few days.
This has resulted in a significant drop in the number of comments and replies about Solana on social media. The decline in SOL’s popularity could have a negative impact on its price movement on the charts.
Solana [SOL] Price Forecast 2024-25
Conversely, weighted sentiment for SOL recorded an uptick, suggesting that the conversations taking place around SOL were positive in nature.
If weighted sentiment remains positive while social volume rises, SOL’s price movement could turn positive.
Source: Santiment
