- Solana (SOL) active addresses dropped from 5.01M to 2.89M since February
- SOL sentiment hits January high with 3.2 bullish comments per bearish
- Price holds above key averages, with resistance near $88.70
Solana (SOL) is showing a mixed market picture as price strength contrasts with weakening network activity. While the token trades above key moving averages near $87 and holds short-term bullish momentum, on-chain data from Santiment shows a sharp drop in weekly active addresses from 5.01 million in February to 2.89 million recently.
Solana Network Activity Drops as Price Holds Strength
Solana (SOL) is trading near $87 after gaining over 3% in the past 24 hours. Despite the price increase, on-chain data shows weakening network activity. Santiment reports that weekly active addresses dropped from 5.01 million to 2.89 million in February. This marks a sharp decline in user engagement across the network.
Fewer wallets are now transferring SOL, which points to reduced usage. The network, ranked seventh by market cap, is facing slower activity compared to earlier months. However, it still performs better than several competing chains during this period.
Santiment noted that Solana remains a strong competitor to Ethereum. Yet, the concern lies in its decline from previous highs rather than its position against rivals. The data presents a mixed trend between usage and price movement.
Solana Sentiment Rises as Technical Indicators Turn Bullish
While activity declines, sentiment around Solana (SOL) has improved sharply. Data shows about 3.2 bullish comments for every bearish one across social platforms. This includes X, Reddit, and Telegram discussions. Sentiment has now reached its highest level since January.
Traders believe SOL could see a breakout after lagging behind Bitcoin and other large assets. This view is based on a possible return to average performance levels. However, this outlook depends on whether network activity stabilizes.
From a technical view, SOL is trading above key moving averages. These include the 7-day at $86.61, the 30-day at $85.34, and the 200-day at $84.13. The MACD indicator shows positive momentum, while the RSI stands near 70, signaling strong buying pressure.
Holding above the $86.70 pivot level remains critical for further upside. If momentum continues, the price may test resistance near $87.70 and $88.70. On the downside, rejection could lead to a pullback toward $85.48 support.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
