Solana: Is it over if it collapses below $84? Bullish sentiment persists on 'thin ice' despite a sharp drop in users.

▲ Solana (SOL)

Solana (SOL) is holding firm near the $84 support level, sustaining hopes for a technical rebound. While the price action defends a key support zone, network user activity has distinctly decreased, widening the gap between market sentiment and on-chain activity.

NewsBTC reported on May 6 that Solana is showing stable movement near the $84 support zone, limiting further downward pressure. Venture, an analyst active on X (formerly Twitter), analyzed that Solana is currently positioned in a support/resistance zone around $84, and there is no significant reason for it to easily break out of this zone based on its chart structure.

Venture explained that Solana's current structure is intertwined with significant support and resistance zones even in the larger trend. This structure held strong even when a 70% correction was previously suggested. He believes that as long as the current zone and money flow indicators do not turn bearish again, it will be difficult for Solana's price to fall to lower levels.

From a technical perspective, Solana is showing movements similar to a phase where major cryptocurrencies establish a positive daily trend. Venture assessed that with several technical factors aligning, the current zone is being interpreted as a long opportunity with low risk and high reward potential, predicated on the defense of the key support line.

However, network activity showed a different direction from price expectations. Santiment Intelligence revealed that Solana's weekly active addresses sharply declined from approximately 5.01 million in early February to around 2.89 million recently. As the number of wallets actually transacting Solana decreased, a clear weakening of network usage became apparent in a period of price stagnation.

Market sentiment, however, leaned towards bullishness. On major platforms like X, Reddit, and Telegram, positive mentions related to Solana were approximately 3.2 times more frequent than negative ones. Expectations grew that Solana could embark on a breakout, following a mean-reversion trend, given its underperformance compared to Bitcoin (BTC) and other major assets.

The founders of morecryptoonlv, also known as MCO Global, also analyzed that Solana is attempting to follow Bitcoin's upward trend, and the broader wave structure is still being maintained. From a technical perspective, Solana still exhibits a constructive structure, and to maintain bullish momentum, it must defend the $85.50 signal line.

The Solana market has entered a zone where its direction will be determined around the $84 support line and the $85.50 signal line. While the price structure holds onto bullish expectations, the decrease in weekly active addresses remains a challenge requiring a recovery in on-chain utilization.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*