Solana's network activity has remained strong despite the bearish sentiment in the broader cryptocurrency market. The Total Value Locked (TVL) on the blockchain has reached a new high of 55.37 million SOL, indicating a healthy network with significant assets locked within its ecosystem.
Solana has also maintained impressive on-chain activity, with an average daily volume exceeding $3 billion and a surge in transaction count, reaching the highest volume in nearly a year. This suggests growing organic demand for the platform and resilience in the face of market pressures.
However, the price performance of SOL has experienced a decline, positioning it within a critical Fibonacci retracement range. The Relative Strength Index (RSI) suggests the possibility of further downside in the short term. Despite this, there are signs of bearish exhaustion, with diminishing intensity in spot outflows and stabilizing funding rates. These developments could indicate a potential shift in market sentiment and a possible recovery for SOL.
While challenges remain, such as negative open interest and funding rates in the derivatives market, there are positive indications as well. Funding rates have started to recover and shift back into positive territory, which may boost investor confidence and support price stabilization. The combination of Solana's strong network fundamentals and reduced bearish pressure could pave the way for a bullish reversal.
Investors are advised to monitor Solana's market sentiment and on-chain data for further signs of recovery. The blockchain's resilience and potential shift in market dynamics position SOL as an attractive option for long-term gains in the cryptocurrency space.