Solana and its FTX ghost – Are NFT sales doing the trick?

• Solana has stayed online for the past one month.
• The platform ranked third in monthly NFT volume. 

Solana [SOL] has maintained a consistent uptime in recent weeks and witnessed significant volume and activity from its NFTs.

Despite the network’s positive developments, SOL’s performance has been less impressive lately. As a result, traders have adopted a cautious approach when dealing with SOL.

Solana maintains uptime

Analysis of Solana’s status indicated remarkable stability in recent weeks.

The chart revealed that over the last 90 days, Solana experienced downtime just once, occurring on the 6th of February, with an outage lasting over four hours.

This means that from the beginning of the year until now, Solana has encountered downtime only once.

This uptime status is noteworthy, especially considering the platform had faced more frequent downtimes in previous years. Despite occasional outages, Solana continues to offer relatively cheap and fast transactions.

It’s worth noting that Solana is one of many networks to experience outages. Still, the frequency of its occurrences has garnered significant attention.

AMBCrypto further noted that the level of activity on the platform has remained high, with its NFT activities keeping pace with other major platforms.

Solana sees increased NFT transactions

AMBCrypto’s analysis of Solana’s NFT activities revealed a slight increase in transaction volume for its top collections.

Specifically, analyzing the volume on Tiexo over the last three months, approximately 6.82 million SOLs, equivalent to over $1 billion, were transacted.

The chart also indicates a marginal increase in volume during this period, albeit by less than 1%.

Moreover, the total number of transactions on Tiexo within the same timeframe surpassed 25 million, with a similar increase of less than 1%.

However, there was a decline in the number of unique wallets by 3.32% and first-time wallets by 6.25%.

Despite this, at the time of writing, the number of unique wallets exceeded 864,000, while first-time wallets numbered over 420,000.

Solana keeps pace with major platforms

Analysis of the NFT transaction volume on Crypto Slam indicates that Solana ranked third in volume, trailing only behind Bitcoin [BTC] and Ethereum [ETH].

Over the last 30 days, Solana recorded a transaction volume exceeding $173.4 million. The top collections in this period were Mad Lads and Froganas, ranking among the top ten collections.

At the time of this writing, Solana also held the third position in terms of 24-hour volume, with a volume surpassing $5.3 million. Bitcoin and Ethereum led the rankings with volumes exceeding $7 million each.

SOL struggles to break the neutral barrier

Solana has made several rally attempts in the last six days, yet it has remained in a bear trend despite these efforts.

AMBCrypto’s analysis of the daily price trend revealed that its Relative Strength Index (RSI) continued to linger below the neutral line at press time. 

Source: TradingView

Although SOL experienced a 5.5% increase on the 22nd of August, nearly breaking the neutral barrier, this rally attempt was short-lived as subsequent declines halted its momentum.

On the 22nd of August, Solana traded at around $157 after the 5% increase. However, it declined by over 1.4% by the 23rd of April and traded at around $154.

Furthermore, the $190 price range persists as a strong resistance level for Solana, and its support levels are observed around the $137 to $122 price range.

Solana traders take cautious approach 

AMBCrypto’s analysis of Solana’s Funding Rate revealed a notable decline of late. Starting the month at around 0.087%, the Funding Rate experienced a significant drop after that.

By the 22nd of April, the Funding Rate had entered negative territory. This indicated that more traders were taking short positions, suggesting an expectation for further declines in SOL’s price.

Source: Coinglass

However, as of the time of writing, the Funding Rate has climbed back above zero, reaching around 0.0050%. This shift suggested a change in sentiment among traders, although it was not strong enough yet. 

Based on Solana’s price trend, it’s plausible that the asset will eventually break above the neutral line and overcome its resistance level at some point this year.

Read Solana’s [SOL] Price Prediction 2024-25

Solana has experienced a significant recovery from its lowest point in 2022, indicating potential for further upward movement.

However, Solana still faces one challenge: shaking off the shadow cast by the FTX collapse. This event has had lingering effects on market sentiment and perception.