Solana’s On-chain Activity Declines as SOL Price Approaches Support
- Solana’s price stabilizes despite decreased trading interest.
- Significant liquidations follow a surge in SOL’s price.
- A decrease in new addresses on Solana’s blockchain raises concerns about its appeal and hampers recovery efforts.
Solana (SOL) is facing challenges in managing on-chain activity as trading interest wanes. However, SOL’s price has stabilized and is nearing support levels following a recent market downturn.
In the past 24 hours, SOL experienced a notable price surge, triggering a wave of liquidations by sellers. TradingView data reveals significant liquidations totaling $13.2 million in SOL, with a majority of $9.5 million originating from short positions.
Nevertheless, there are also concerning trends emerging. The number of new addresses on the Solana blockchain has seen a noticeable decline. Over the last 15 days, new addresses have decreased by 14.7%, dropping from a weekly high of 915,000 to 780,000.
Traditionally, a substantial increase in new addresses indicates healthy network growth and improved utility, which usually benefits Solana’s value. Conversely, the current slowdown in new addresses raises investor concerns about potential challenges such as reduced blockchain appeal, technical obstacles, or competition from rival platforms. These trends could hinder SOL’s ongoing recovery efforts.
Furthermore, the decrease in active addresses on the Solana blockchain, from 1.21 million to 1.1 million, poses additional challenges for SOL’s price. Reduced user engagement and transaction activity undermine investor confidence, potentially dampening demand for SOL.
Analysts predict that SOL’s recovery could face obstacles as it encounters resistance levels without substantial buying pressure, possibly leading to a reversal for Solana.