*Why is Solana (SOL) price down today?*
SOL price is down today as a pronounced decline in onchain and economic activity leads to a drop in Solana network use.
SOL $175.17 is down 3% on Oct. 31, amid minor corrections across the broader crypto market.
The largest daily losses were witnessed by holders of Gigachad (GIGA) and Goatsues Maximus (GOAT), which are down 8.7% and 7% on the day.
Additional data from CoinMarketCap reveals that the overall market capitalization of all Solana-based tokens has dropped from $277.9 billion on Oct. 31 to $275.2 on Oct. 31.
The total trading volume has also dropped by 25.7% over the same period.
SOL’s bearish divergence
SOL’s drop today precedes a period of growing bearish divergence between its price and the relative strength index (RSI).
Notably, SOL’s price rose between Oct. 24 and Oct. 29, forming higher highs. But, in the same period, its daily RSI descended, forming lower highs.
As a rule of technical analysis, a divergence between rising prices and a falling RSI indicates weakness in the prevailing uptrend, prompting traders to sell more at local highs.
The rise in the price also led to overbought conditions on Oct. 24 when the RSI hit 72, occasioning a correction as buyer exhaustion and profit-booking set in.
