🚨Three reasons why Solana could see a double-digit drop📉
☝️The #Solana network has seen a drop in the number of active addresses and new addresses in September. Open interest on Solana has dropped by almost 20% between September 30 and October 4, suggesting that capital is likely flowing out of SOL.
Technical indicators show the likelihood of a correction in SOL by analyzing price action on different time frames. SOL could erase almost 15% of its value if it falls to the support at $120. Solana (SOL) price appears to have found some support on Friday, recovering slightly from the sharp sell-off recorded earlier this week.
However, on-chain metrics and technical indicators show increasing chances of a further price decline, suggesting that the bounce could be short-lived. These three factors signal that Solana could be in for a double-digit correctionAddress activity on the Solana blockchain has been declining throughout September, both in terms of active and new addresses, according to data from The Block.
Although address activity remains well above 2024 average levels, the recent decline suggests waning demand among market participants.
Always DYOR 💡
