- SOL’s network activity remained high over the past month.
- The token’s technical indicators suggested a price drop to $127.
Solana [SOL] has witnessed a large influx of funds into the network reflecting the increase in blockchain adoption and usage. This development can be considered optimistic as it indicates that investor confidence in Solana is increasing.
But will this episode have a positive impact on the token’s price?
Solana’s new milestone
IntoTheBlock recently posted one tweet highlighting an interesting development in the Solana ecosystem. According to the tweet, more than $100 million has been transferred from all other chains to Solana in the last seven days. This also included more than $70 million from Ethereum.
Since this appeared to be a large influx of money into the network, AMBCrypto checked Artemis’s data. facts for more information about the blockchain network activity.
According to our analysis, after a brief dip, Solana’s daily active addresses started to rise again. Daily transactions have also remained fairly stable over the past 30 days, again reflecting high usage and adoption.
Apart from that, Solana’s condition in the DeFu space looked optimistic as TVL rose last month.
Source: Artemis
However, despite the new money flowing in, SOL’s performance in terms of captured value has fallen in recent days or weeks. This was evident from the decrease in fees. As a result, blockchain revenues also began to decline.
Will SOL be affected by this?
With a lot happening in the blockchain ecosystem, AMBCrypto planned to look at the state of SOL to see if all factors had any impact on the token’s price action.
We found that SOL bears dominated the market. The price of the token fell by more than 7% last week. In the last 24 hours alone, the token witnessed a 3% price drop.
At the time of writing, Solana was trade at $144.03 with a market cap of over $67 billion. The bad news was that while the price of SOL fell, trading volume increased by over 40%, indicating a continued price decline.
Nevertheless, investor confidence in the token increased. This was the case when SOL’s weighted sentiment moved into the positive zone, indicating a rise in bullish sentiment.
Source: Santiment
Read Solanas [SOL] Price prediction 2024–2025
That’s why we checked Solana’s daily chart to find out more about where the token was headed. Despite the bullish sentiment, the technical indicator showed a bearish advantage in the market.
The token’s Relative Strength Index (RSI) also registered a downward trend. These indicators suggested that the SOL could fall to $127 in the coming days.
Source: TradingView