Solana's Activity Surges 12.74% But Price Drops 1.14

Solana's on-chain activity has surged, with active addresses hitting a new high of 14.63 million in the past 24 hours. This increase was accompanied by a 12.74% rise in volume to $3.75 billion, typically a sign of an impending rally. However, despite this surge in activity, the price of SOL has not followed suit, dropping by $1.14. This discrepancy suggests that the market sentiment remains weak, with on-chain data indicating a likely downward trend.

One of the key factors contributing to this trend is the return of previously inactive users. Artemis reported that 1.1 million users who had been inactive re-engaged in the past day. This resurgence, however, coincided with a sharp drop in Total Value Locked (TVL) as on-chain activity declined. Data from DeFiLlama shows that over $91 million worth of SOL exited the market in the past day, as investors began withdrawing previously deposited tokens from Solana-based protocols. This trend indicates a shift from long-term holding to a short-term outlook, with many users likely selling rather than accumulating.

Daily transactions spiked in the past 24 hours, reaching a new peak. Year-to-date (YTD) transaction count has now climbed to 116.66 million, while decentralized exchange (DEX) activity also crossed a key milestone, surpassing $16.6 billion. This increased activity suggests that while some investors are selling, others are taking advantage of the dip to accumulate more SOL. Spot market investors, for instance, have spent $16.55 million purchasing SOL over the past two days. Additionally, Solana’s Bridge Netflow, which tracks SOL bought from other ecosystems, totaled $114,000, suggesting growing cross-chain interest and increased appetite from external investors.

Technical analysis on the 4-hour chart shows a strong possibility of a market rally in the near term. Currently, SOL is trading within a symmetrical triangle, a pattern that typically precedes a breakout. If a breakout occurs, SOL could retest the $158 level. With heightened momentum, prices could climb further by $10, reaching $168. This technical outlook, combined with the increased activity and cross-chain interest, suggests that despite the current downward trend, there is potential for a rebound in the Solana market.