Yes

>>Solana usage declines sharply, raising questions about the sustainability of recent price increases.

Solana usage declines sharply, raising questions about the sustainability of recent price increases.

crypthub

1 day ago

Solana's Recent Price Action

Solana is exhibiting heightened volatility amid broader market uncertainty. While some anticipate a market rally, others are cautious due to Bitcoin’s struggle with price discovery. Solana's price has diverged from underlying network activity, raising concerns about sustainability.

Network Activity Concerns

Data from CryptoQuant reveals a concerning negative divergence between Solana’s price and network transaction volume. Transaction volume has fallen significantly from around 125 million to approximately 64 million. This suggests price momentum might be driven by speculation rather than organic growth.

Market Analysis and Outlook

Solana is currently consolidating after a strong rally, trading near $221. Immediate support lies around $210–$215, with continued bullish momentum reliant on maintaining this level. Analysts are closely watching activity, particularly DeFi and NFT interactions, to assess whether the current trend is a temporary adjustment or a sign of speculative overheating.