Bears Take Control: Solana’s Price Takes a Hit

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Last week witnessed a bearish takeover in the crypto market, leading to a significant decline in the prices of several cryptocurrencies, including Solana (SOL). Investors in Solana experienced a challenging period as the token’s price plunged by nearly 10%. At the time of writing, SOL was trading at $144.39, with a market capitalisation surpassing $66 billion. The sudden dip raised concerns among investors, who began to worry about the token’s future trajectory.

A Silver Lining: Analyst Predicts SOL’s Recovery

Despite the bearish trend, there is a glimmer of hope for Solana investors. Ali, a renowned crypto analyst, recently posted an encouraging tweet that caught the attention of the crypto community. According to Ali, a buy signal appeared on Solana’s TD sequential around the $141 mark, which suggested a potential price recovery.

The significance of this support level cannot be overstated. Solana’s ability to maintain this crucial support point indicates a high probability of bouncing back from its recent losses. The tweet also highlighted Solana’s impressive performance in the previous month, where it led the market in terms of the total number of unique traders, reaching a remarkable 308,000. This figure overshadowed the numbers for Bitcoin and Ethereum, which had 129,000 and 74,000 unique traders, respectively. Polygon (MATIC) and Aptos (APT) were also notable contenders, making it to the top three of this list.

Solana Dominates NFT Transactions

Beyond its impressive trading activity, Solana has also been making waves in the non-fungible token (NFT) space. The blockchain recorded a staggering 5.2 million monthly NFT transactions, far surpassing the figures for Bitcoin and Ethereum, which stood at 550,000 and 437,000 transactions, respectively. This dominance in NFT transactions highlights Solana’s robust ecosystem and its growing popularity among digital asset enthusiasts.

An in-depth analysis by AMBCcrypto, based on DappRadar’s data, identified the top NFT collections on Solana over the past 30 days. Leading the pack were STEPN, Mad Lads, and Famous Fox Federation. In comparison, the top collections on Bitcoin were NodeMonkes, Bitcoin Puppets, and RuneStone. Meanwhile, on the Ethereum blockchain, Bored Ape Yacht Club, Milady Maker, and Mutant Ape Yacht Club secured the top three positions.

Interestingly, despite its commanding lead in transaction volume, Solana’s monthly NFT sales volume saw a significant decline, dropping by more than 40%. This drop in sales volume came at a time when Bitcoin was outperforming Ethereum in terms of monthly NFT sales, as previously reported by AMBCrypto.

While the recent market downturn has undoubtedly caused some anxiety among Solana investors, the potential for recovery remains strong. The buy signal near the $141 support level, coupled with Solana’s impressive trading activity and dominance in the NFT space, provides a foundation for optimism. As the market continues to evolve, investors will be closely monitoring Solana’s performance, hoping that the current signals of recovery translate into tangible gains in the coming weeks.

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