Solana [SOL] once again outperformed the king of altcoins, Ethereum, in the NFT space by registering massive growth in terms of total NFT sales in the last month.
It managed to grow by more than 100%, while Ethereum registered a negative 18% growth during the last 30 days. Apart from Ethereum, other popular chains like BNB and Polygon also displayed negative growth.
Here’s AMBCrypto’s Price Prediction for Solana (SOL) for 2023-24
— Solana Daily (@solana_daily) October 12, 2022
Not only this, but CryptoDep, a popular Twitter handle that posts about crypto updates, mentioned that SOL was also on the list of cryptos that were trending on CoinGecko on 12 October.
— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) October 12, 2022
Though both of these developments looked quite promising, nothing seemed to reflect on SOL’s chart as it was mostly painted red.
CoinMarketCap’s data revealed that SOL was one of the worst performers among the top 10 cryptos in terms of market capitalization as it registered more than 10% negative weekly gains.
At the time of writing, SOL was trading at $30.61. A potential reason for this performance depreciation could be the most recent hack of Mango, a DeFi project on Solana.
By manipulating Mango’s collateral, the hackers received a significant number of loans from the company’s treasury, potentially causing a loss of over $100 million. Interestingly, SOL’s on-chain metrics also revealed that things were worse than they looked.
Not all good
Solana’s development activity went down considerably over the last week, which is a red signal for a blockchain as it represents less effort by the developers in improving the network.
However, at the time of writing, SOL’s development activity registered a slight uptick. On the other hand, its volume went down marginally on 12 October.
Not only this, but SOL’s FTX funding rate also witnessed a decline, indicating less interest from the derivatives market. Nonetheless, SOL’s social volume spiked last week. Thus, suggesting the increased popularity of the token.
Interestingly, despite outperforming Ethereum in the NFT space, SOL’s total NFT trade count and trade volume in USD went down last week.
Darker days ahead
A look at SOL’s daily chart painted a bearish picture, as most of the market indicators suggested a further drop in SOL’s price over the coming days.
For instance, SOL’s Relative Strength Index (RSI) registered a downtick and was resting below the neutral position.
The Chaikin Money Flow also went down, which was a bearish signal. The MACD registered a bearish crossover, suggesting darker days ahead.
Moreover, the Bollinger Bands data revealed that SOL’s price might soon enter a high volatility zone, further increasing the chances of a price decrease.