Market confidence in Solana is dropping rapidly, and several concerning indicators are emerging in critical parameters. A clear sign of the shift in market attitude is the 81% decline in Solana’s financing rate over the past 48 hours. Even though the rate is still positive, the decline suggests that traders are becoming more cautious and prefer short positions.
This shift comes as Solana’s price struggles near multi-week lows. The network’s active addresses, a measure of user engagement, have also hit their lowest levels since December. Reduced participation signals weakening demand and could lead to further volatility.
Market analysts point out that low activity levels can limit liquidity, making Solana’s price more vulnerable to sharp movements. Investors are now closely watching SOL’s ability to maintain critical support levels.
Currently, Solana is trading around $219. A move above the $221 resistance level could boost market sentiment and push the price toward $245. The next support level is close to $201, thus if this level is not maintained, there may be a fall.
The next few days will be critical for Solana’s immediate future. SOL may continue to be under pressure if user involvement and enthusiasm aren’t rekindled, which would increase market uncertainty for cryptocurrencies generally.
