The Solana (SOL) token has experienced a significant decline in value over the past few months, with its price plummeting by half since its peak in August this year. This downturn has led to a bear market, with the token forming a bearish flag pattern that indicates further downside risks. According to recent data, top metrics such as the number of transactions and active addresses have decreased, suggesting a decline in network activity.
Solana’s Decline in Key Metrics
Nansen data reveals that the number of transactions on the Solana network fell by 10% to 1.79 billion over the past 30 days. Despite this decline, Solana remains the most active network in the crypto industry, with transactions surpassing those of the next five chains combined. 
Solana transactions have declined | Source: Nansen
Furthermore, the number of active addresses on the network decreased by 5.7% over the past 30 days to 60.1 million. Fees generated also fell by 21% to $14 million, indicating a decline in network activity. The total value locked (TVL) in Solana fell to $18.57 billion, a significant decline from the year-to-date high of $30 billion. However, TVL has continued to rise relative to SOL, suggesting that the network still has some level of activity.
Technical Analysis of Solana’s Price
The daily time frame chart shows that SOL price has fallen from a high of $252.55 in August to $124.30 currently, remaining below all moving averages. Solana has formed a bearish flag pattern, a popular continuation sign, and has moved below the lower side of this pattern, confirming a bearish breakout. 
SOL price chart | Source: crypto.news
According to technical analysis, the token will continue to fall as sellers target the psychological level of $100, which would be a 20% decline from current levels. This decline is also reflected in the stablecoin flows, with Nansen data showing stablecoin outflows. 
Stablecoin flows in and out of exchanges | Source: Nansen
Conclusion and Future Outlook
In conclusion, Solana’s decline in key metrics and bearish flag pattern suggest further downside risks for the token. As the crypto market continues to experience a downturn, it is essential for investors to stay informed and adapt to the changing market conditions. For more information on Solana’s price and key metrics, visit https://crypto.news/solana-price-forms-alarming-pattern-key-metrics-plunge/
