- Solana’s NFT sales volume and transactions fell last month.
- SOL’s price action remained bearish and indicators pointed to a further price decline.
Solana [SOL] witnessed a year-long summer in its NFT ecosystem as the blockchain outperformed its competitors. However, Solana’s NFT metrics started to decline over the past month. Meanwhile, the token’s price action also turned bearish.
Solana’s NFT ecosystem shines brightly
SolanaFloor, a popular X-handle that posts updates related to the blockchain, posted tweet highlighting SOL’s commendable achievements.
According to the tweet, SOL outperformed all other chains, including Bitcoin [BTC], Ethereum [ETH]And Polygon [MATIC]in annual adoption of NFT blockchain users.
While SOL’s user base grew by 33% over the past 365 days, MATIC, BTC, and ETH’s users grew by 29%, 10%, and 21%, respectively.
AMBCrypto’s look at DappRadar’s facts revealed that sharky.fi’s MadLads, Frogana, and Sharx were the top NFT collections on Solana, which may have contributed to the aforementioned performance.
Despite the promising 365-day growth, things started to change over the past month. AMBCrypto’s look at Cryptoslam’s facts pointed out that SOL’s NFT sales volume fell by more than 36% last month, as did the total number of buyers and sellers.
The total number of NFT transactions also fell by 11%. Santiment’s data was also consistent with this, as SOL’s NFT trading numbers fell sharply over the past month.
Source: Santiment
Solana investors should be concerned
As Solana’s NFT metrics fell, the token’s price action also turned bearish. According to CoinMarketCapSOL fell by more than 25% last month.
In the last 24 hours alone, the token’s value has fallen by 7%. At the time of writing, SOL was trading at $145.55 with a market cap of over $65 billion, making it the fifth largest cryptocurrency.
The price drop also took a toll on the token’s social metrics. SOL’s social volume has fallen over the past month, reflecting a decline in its popularity in the crypto space.
Moreover, Solana’s weighted sentiment remained in the negative zone for most of the days. This clearly suggested that bearish sentiment surrounding the token was dominant in the market.
Source: Santiment
AMBCrypto then analyzed the token’s daily chart to see if this bearish price trend would last longer. We found that both SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) started to decline and fell further below their respective neutral levels.
Read Solanas [SOL] Price prediction 2024-25
Furthermore, the token’s price also failed to move above the 20-day Simple Moving Average (SMA) as suggested by the Bollinger Bands.
All these technical indicators suggested that investors could witness a further decline in SOL’s price in the coming days or weeks.
Source: TradingView