- Solana seems to be showing signs of recovery after cooling off in Q3
Hence, it’s worth assessing the possibility of SOL adopting a similar recovery trend
As a researcher with years of experience observing the cryptocurrency market, I find myself intrigued by Solana’s recent developments. After a summer lull, Solana seems to be showing signs of recovery after cooling off in Q3. This could potentially set the pace for SOL‘s recovery on the charts, but it’s important to remember that the crypto market can often be as unpredictable as a rollercoaster ride at an amusement park!
After July, Solana’s network activity significantly decreased, which affected the desire for SOL due to its connection with it. But, new discoveries indicate that the network’s activity may be recovering now. Could this potentially lead to a rebound in SOL’s performance on the price charts?
Between July and early September, the activity on Solana’s blockchain decreased noticeably. In July, the daily transaction volume surpassed $2 million USD, but by late August and early September, it dipped down to less than $1 million.
During this same timeframe, we noticed that the Total Value Locked (TVL) on Solana experienced a substantial fluctuation as well. For instance, it reached over $5.6 billion at the end of July, but then declined to around $3.8 billion in the first week of August.
The TVL saw a slight increase immediately afterward but stayed within the $4.6 billion bracket until early September.
Since then, the total value locked (TVL) in Solana has shown a substantial rebound, approaching its highest point from earlier this year. This trend suggests that both trust in Solana and on-chain activity are regaining momentum.
Can SOL benefit from improving Solana sentiment?
Increased activity on the Solana network is likely to result in higher demand for SOL tokens. This trend seems to be happening as we can see from its price movement. Interestingly, the lower price range of SOL has also shown signs of following an upward supporting line.
So far this month, the value of SOL has attempted to break a particular support level on two separate occasions. The most recent attempt happened just within the past day.
The highlighted support suggests it’s quite likely the price will move higher during the weekend. At the moment I looked, the Relative Strength Index (RSI) was trending toward the middle, but still below that level.
Over the past three days, there’s been a noticeable drop in both buying and selling activities on the blockchain. This could be attributed to bearish fatigue and insufficient bullish momentum to replace it. However, the volumes of bullish and bearish transactions seem to be roughly equal, making it challenging to determine a definitive trend.
Ultimately, the analysis of buy and sell volumes indicated that there remained significant doubt about the future direction.
Essentially, Solana’s current upward trend might be due to its rising support level and overall strong performance. However, it’s important to note that there’s a substantial possibility it could fall below this same support line in the future.
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2024-10-12 06:17