The Solana network has seen a drop in the number of active addresses and new addresses in September.
Open interest in 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 drops to the support at $120.
Solana (SOL) price appears to have found some support on Friday, recovering slightly from the sharp sell-off seen earlier this week. However, on-chain metrics and technical indicators are showing increasing chances of a further price decline, suggesting that the bounce could be short-lived.
These three factors indicate that Solana could suffer a double-digit correction
Address activity on the Solana blockchain has been on the decline 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.
Number of active addresses on the Solana network
The second key factor is Open Interest (OI). The metric identifies the total number of active contracts in the options market that are currently âopenâ or awaiting expiration. Traders use the indicator to gauge the interest and demand for an asset among market participants.
OI on Solana fell nearly 20% between Sept. 30 and Oct. 4, according to data from Coinglass.
The third factor is technical indicators on Solana price charts on different time frames.
Solana could suffer a fall of almost 15%
Solana is hovering around $140 on Friday. The altcoin is down 12% this week, and from a technical perspective, another double-digit drop is likely.
The Moving Average Convergence/Divergence (MACD) indicator on two different time frames (daily and 4-hour) shows underlying negative momentum in the SOL price trend.
On the daily chart, Solana has been trading within a tight range between $163 and $120 since August, with an outlier being the asset's drop to a low of $110 on August 5.
SOL is currently near $140, close to the midpoint of the range. If SOL corrects further, the altcoin could slide to the range low of $120 (almost a 15% drop) or sweep liquidity at the August 5 low of $110.
