Solana (SOL) Declines as New User Onboarding Slows: Will Prices Continue to Drop?
Solana (SOL) has been on a downward trend over the past month, with a significant 27% decline in the last 30 days. This decline is directly linked to the slowdown in new user onboarding within Solana’s ecosystem, leading to questions about the future of the cryptocurrency.
The current price of SOL stands at $134.89, with a nearly 5% drop in price. This performance has left investors wondering whether the decline will continue or if there is potential for a bullish comeback.
The decrease in new users joining Solana’s network can be attributed to various factors, including network congestion, transaction delays, and the fading interest in meme coins that previously fueled the network’s expansion. On March 29, Solana saw a surge in new user adoption, with 1.2 million wallets created on the network. However, since then, there has been a noticeable decline in new users, with only 608,298 new wallets initiating their first transaction by April 28, marking a significant 51% decrease within just a month.
The impact of this decline in new users is evident in the drop in token millionaires on the network, from 310 to 196 in the last 24 hours. With SOL prices falling by 27% in the past month, it is clear that the decrease in new user onboarding has had a significant impact on the network’s performance.
Technical indicators suggest a potential further decline in SOL’s price, with a possible drop to $120 on the horizon. The market is currently oversold, with bearish momentum indicated by the MACD indicator. While there is a slim chance of a retest of the $150 price level, investors should exercise caution as Solana may experience further decline in the coming days.
Overall, the slowdown in new user onboarding within Solana’s ecosystem has had a direct impact on SOL’s performance, leading to questions about its future trajectory in the crypto market. Investors should closely monitor the situation and be prepared for potential price fluctuations in the near future.
