- Solana's NFT sales volume and transactions declined last month.
- SOL's price trend remained bearish, with indicators pointing to further price decline.
Solana [SOL] The company's NFT ecosystem experienced a year-long summer as blockchain outperformed its competitors. However, Solana's NFT index started declining last month. On the other hand, the price trend of the token also became bearish.
Solana's NFT ecosystem is shining bright
SolanaFloor, a popular X handle that posts the latest information related to blockchain, Tweet It highlights SOL's commendable performance.
According to the tweet, SOL outperformed all other chains. Bitcoin [BTC], Ethereum [ETH]and polygon [MATIC]annual NFT blockchain user adoption.
Over the past 365 days, the number of SOL users has increased by 33%, while the number of users for MATIC, BTC, and ETH have increased by 29%, 10%, and 21%, respectively.
How AMBCrypto views DappRadar data We revealed that sharky.fi's MadLads, Frogana, and Sharx are Solana's top NFT collections, which may have contributed to the aforementioned achievements.
Despite the promise of 365 days of growth, things started to change last month. How AMBCrypto looks at Cryptoslam data It noted that SOL's NFT sales volume decreased by more than 36% last month, as did the total number of buyers and sellers.
The total amount of NFT transactions also decreased by 11%. SOL's NFT transaction numbers have fallen sharply over the past month, and Santiment's data also corresponds to this.
Source: Santiment
Solana investors need to worry
While Solana’s NFT index declined, the token’s price trend also became bearish.according to coin market capSOL has fallen over 25% in the last month.
In fact, in the last 24 hours alone, the value of the token has fallen by 7%. As of this writing, SOL is trading at $145.55 and has a market capitalization of over $65 billion, making it the fifth largest cryptocurrency.
The price drop also hit the token's social indicators. SOL’s social volume has decreased over the past month, reflecting its declining popularity in the cryptocurrency space.
Additionally, Solana's weighted sentiment remained in negative territory most days. This clearly suggested that bearish sentiment towards the token was dominant in the market.
Source: Santiment
AMBCrypto then analyzed the token’s daily chart to see if this downward price trend could continue for much longer. We find that both SOL's Relative Strength Index (RSI) and Money Flow Index (MFI) have started declining and are further below their respective neutral marks.
read Ms. Solana [SOL] price prediction 2024-25
Additionally, the token price also failed to cross its 20-day simple moving average (SMA) as suggested by Bollinger Bands.
All these technical indicators suggest that investors may witness further decline in SOL price in the coming days and weeks.
Source: TradingView
