The cryptocurrency market started the weekend in the red zone. Liquidity problems following the harsh sales and liquidation wave in October added a negative atmosphere to Saturday morning transactions. One of the altcoins most affected by this weak outlook was Solana, which has lost sharp momentum in recent months.
The Increase in Address Activity Points to a New Trend
At the time of writing, Solana price was trading at $125.94, losing 11% on a weekly basis, despite remaining flat in the last 24 hours. The decline, which has been ongoing since November 14, carried the decline to the fourth day in a row. Solana’s price has largely eroded since its peak of $253 on September 18, with the loss reaching 49%, according to data from on-chain analytics platform Santiment.
In the process, Solana lost the 50 and 200-day moving averages ($179.99 and $179.93), which are followed as important support on the daily chart. This downward movement also confirmed the death cross pattern, which occurs when the short-term average falls below the long-term average. While technical indicators are burning red, the only positive development in the market is a unique positive divergence signal created by Solana.
Positive Divergence in Solana: Price Falls But Activity Increases
According to Santiment’s data, although the SOL price has halved since the peak, interest in the network is growing significantly. On-chain address interaction has reached its highest level in the last 10 weeks. The creation of new SOL wallets is also showing strong momentum. This painting is considered a classic example of bullish divergence.
While normally there is a weakening in network activity during price drops, the opposite occurred in Solana. Santiment interprets this as “ultimately a strong turnaround signal.” Although the price is downward, the increase in the number of users shows that investors’ interest in the project continues and may be a harbinger of a possible change in direction.
Record on ETF Front: BSOL Exceeds 500 Million Dollars
Despite the price drop, Solana demand on the corporate side remains strong. Solana ETFs, particularly those traded in the US, continued to receive net inflows even during the recent decline. The most important indicator of this demand was Bitwise Solana Staking ETF (BSOL).
Having surpassed $500 million in assets under management in just 18 days of trading, BSOL has become the largest Solana ETP in the US. According to experts, this indicates that institutional investors’ long-term expectations for Solana are positive.
Meanwhile, there were other developments in current market news that could affect the Solana ecosystem. For example, last week it was announced that a Solana-based layer-2 solution raised $12 million in the funding round. Such investments show that the dynamism on the developer side of the network continues.
As a result, although Solana has been under technical pressure in recent weeks, on-chain data and ETF demand create a picture that contradicts weak pricing. Despite the decrease in the price, the increase in user activity may herald a new period of recovery. However, as global market conditions remain uncertain, it will become clear in the coming days how strong the upward signals in Solana will turn into a trend.
