Solana (SOL) has slipped below the $130 mark, marking a 20% decline over the past 11 days. With the current price at $127, the $125 support zone is under significant pressure. This crucial level has acted as a stronghold for bulls in the past.
The recent price action hints at deeper troubles. A death cross between the 50-day and 200-day EMAs looms, signaling a potential breakdown rally. The daily RSI also reflects a glimmer of hope, showing a bullish divergence that hints at a possible double-bottom reversal. Yet, the pattern of lower highs suggests strong overhead resistance.
The broader market downturn has coincided with a sharp drop in Solana’s active addresses. From a peak of 33.15 million in July, active addresses have plummeted to just 11.1 million in August. Daily active addresses also fell below 1 million, reflecting waning interest and activity on the network.
This decline in user engagement could foreshadow…
