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Solana Price Weakens Despite Record User Growth, What's Going On?

Solana Price Weakens Despite Record User Growth, What's Going On?

Solana has recorded its highest user activity for 2024. The blockchain platform attracted 123m active addresses in October. Yet the network's native token struggles to maintain momentum.

Daily active addresses surged 41 per cent from September levels. The platform registered 148m new users last month. This marks the highest monthly increase this year.

Market reaction remains subdued. Solana's SOL token trades at $168.01, down 4 per cent in 24 hours. Trading volumes increased 6 per cent, suggesting elevated selling pressure. Technical resistance levels constrain price movement. The token faces significant selling pressure at $159.96 and $171.78. These levels have repeatedly blocked advances toward $190.

Volume patterns indicate bearish sentiment. Rising trading activity alongside price declines typically signals selling pressure, and technical indicators support this interpretation.

The token's moving average convergence/divergence presents warning signs. A bearish crossover has occurred, with the MACD line breaking below its signal line. Traders often view this pattern as a selling signal.

Platform adoption shows remarkable strength. October's user count represented a 41 per cent increase from September's 86m addresses. New user registrations rose 32 per cent month-on-month.

Current price action suggests further weakness. The $171.78 level, previously supportive, risks becoming resistance. This could accelerate downward pressure.

Technical analysis indicates key support levels. The token may test $159.96 if current levels fail to hold. Further weakness could push prices toward $148.14. Upside potential remains constrained. Bulls need to reclaim $171.78 as support to target $188.60. The year's high of $210.03 presents a distant target.

The divergence between user growth and price action puzzles market observers. Strong network adoption typically supports token values. Solana's case presents an unusual exception.

Trading patterns suggest institutional positioning. Higher volumes with declining prices often indicate large-scale portfolio adjustments. Market participants await signs of stabilization.

Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.
Solana Price Weakens Despite Record User Growth, What's Going On? | Yellow.com