Solana is outperforming all the other chains by far in terms of daily active users and transactions. Despite the on-chain growth, SOL has lost a major resistance level on the daily chart.
Solana is showing strong user activity according to analyst Lucky. The network has surged daily in on-chain transactions and daily active users. The network processed more than 100 million daily on-chain transactions and more than 3 million active users.
Processing more than 100 million daily transactions indicates that users are actively transferring assets, interacting with decentralized applications (dApps), trading on decentralized exchanges, and engaging with other on-chain services. At the same time, exceeding 3 million daily active users suggests that participation on the network is broadening rather than being driven by a small number of wallets.
Rising transaction volumes and user activity generally signal a healthy ecosystem, reflecting stronger demand for Solana’s infrastructure. If this trend continues, it could support long-term growth by attracting more developers, applications, liquidity, and investors to the network, potentially strengthening demand for SOL over time.
SOL loses 50-day MA as bearish sentiment overshadows
Despite showing stellar growth with on-chain activity, SOL has lost a major support level, which is the 50-day MA. The market usually considers a coin to be bullish in the short term when its price is above the 50-day MA. However, now that it has crashed below this level, the bearish sentiment seems to have overshadowed but not yet set in. Why?
The symmetrical triangle could breakout in any direction. Although SOL has fallen below the trendline of the symmetrical triangle, it could always recover and once again fall back within the pattern. When SOL does fall back into this pattern, there is every chance that SOL could gain value.
