Solana has seen a significant increase in the number of NFT buyers, surging by more than 125%. Market indicators are pointing towards a potential price rise for SOL as a result.
Solana experienced a significant surge in NFT buyers, increasing by over 125%. Despite optimistic milestones in its NFT ecosystem last week, indicating growth, the price of Solana’s native token, SOL, has been influenced by bearish market conditions. This disparity highlights the contrasting fortunes between Solana’s thriving NFT sector and the current challenges facing its token’s market value.
Solana’s NFT Market Trends and Insights
SolanaFloor, a prominent handle on X (formerly Twitter), recently highlighted an intriguing development: Solana surpassed $100k SOL in NFT trading volume over the past seven days.
According to CRYPTOSLAM’s data, Solana experienced a remarkable 125% increase in the number of NFT buyers last week. Simultaneously, the number of NFT sellers on the blockchain also surged by more than 66%. DappRadar reported that MadLads emerged as the top Solana NFT collection of the week, followed by Famous Fox Federation and STEPN in the top three.
Source: CRYPTOSLAM
Despite the surge in buyers and trading volume, there was an unexpected decline of over 4% in Solana’s NFT sales volume. This anomaly was reflected in Santiment’s data, which also indicated a decrease in SOL’s NFT trade counts for the week.
These insights underscore the dynamic nature of Solana’s NFT market, where increased activity among buyers and sellers is not necessarily translating into higher sales volumes.
Solana’s NFT Growth Contrasts with SOL Price Decline
Last week, Solana’s NFT ecosystem showed growth in several areas, but SOL, the native token, faced a different scenario. According to CoinMarketCap, SOL’s price fell by nearly 10% over the past seven days.
As of the latest update, Solana was trading at $137.34, boasting a market capitalization exceeding $62 billion, positioning it as the fifth-largest cryptocurrency.
The significant price decline adversely affected SOL’s social metrics. Particularly, the token’s Weighted Sentiment plummeted, indicating prevalent bearish sentiment in the market.
Source: Santiment
Potential Reversal in SOL’s Bearish Trend
According to CFGI.io’s data, Solana’s fear and greed index stood at 30% at the time of writing, indicating a “fear” phase in the market. Historically, such levels often precede potential price increases.
Analyzing SOL’s daily chart revealed that its price recently touched the lower limit of the Bollinger Bands, suggesting a possible rebound in price. Moreover, the Relative Strength Index (RSI) showed an uptick, further supporting the likelihood of a price hike.
Source: TradingView
If a trend reversal occurs, SOL could potentially reach $162 in the near future. A successful breakout above this level may pave the way for SOL to reclaim $186. These indicators suggest a possible shift from the recent bearish sentiment towards more bullish market conditions for Solana.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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