Solana Forms Death Cross as Active Users and Revenue Decline Significantly

Solana’s (SOL) price has recently encountered a major bearish signal as it formed a “death cross” on its price chart. This technical pattern occurs when the 50-day moving average (MA) crosses below the 200-day MA, signaling a potential continuation of downward momentum. For many traders, this pattern often marks a sign of a longer-term bearish trend. As of now, Solana’s price has dropped to approximately $140.14, reflecting a 14.7% decline from its previous close.

In addition to the death cross formation, several other factors are contributing to Solana’s price struggles. One of the key factors is a significant drop in user activity and network revenue. The number of active users on Solana’s network has plunged to 87.3 million, its lowest level since October 7, 2024. This is a sharp decline from the peak of 137 million active users recorded in November 2024.

Furthermore, Solana’s revenue has taken a substantial hit. The network’s daily earnings have dipped below $1 million, a stark contrast to the $44 million it was generating earlier this year. These declines in both active users and revenue suggest a weakening network, which could have negative implications for Solana’s price stability.

Moreover, the total market capitalization of Solana’s meme coins has experienced a notable drop. It went from $25 billion in January to just $9.8 billion recently. This significant drop points to a decrease in speculative trading and a general loss of investor confidence.

With these signs of weakening network activity, revenue, and a bearish technical chart, Solana is facing a challenging period in the market. The combination of a death cross, reduced user engagement, and declining revenue paints a concerning picture for Solana’s short-term outlook. Investors and traders may want to carefully monitor these trends to assess whether this bearish momentum will continue or if the network can recover.