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    Can Solana NFT Restore SOL Price?

    Solana (SOL) has disappeared from the list of the top 10 cryptocurrencies by market capitalization for a few weeks. Although Solana failed to impress investors, its NFT ecosystem is showing many positive signs.

    Several new NFTs have been listed on Solana in the past week, including Claynosaurz, Panda, Pixel Boy, Moo Doo, ACF, and many more.

    Dune’s data showed that Solana’s NFT trading volume has increased recently. y00ts NFT reached over 2,100,000 SOL in trading volume. However, a slight drop was noticed in Solana’s active wallets.

    Santiment’s data on SOL’s NFT space is not too promising, the total number of NFT transactions and SOL’s USD trading volume have plunged over the past week.

    Source: Santiment

    Can Solana NFT help SOL?

    Considering the nature of these developments, SOL received a positive update as the weekly chart turned green. According to CoinMarketCap, the price of SOL has increased by 4% over the past seven days, and at the time of this writing, it was trading at $13.8 with a market capitalization of over $4.9 billion.

    However, SOL’s daily chart showed that the trouble has not yet been over. When looking at the movement of the Bollinger Bands, it can be seen that the SOL price has entered a tight zone. This minimizes the chances of a bullish breakout.

    Furthermore, the Relative Strength Index (RSI) of SOL is below neutral. This is another bearish signal. The MACD offers some hope as it shows a bullish crossover, thus paving the way for a higher rally.

    Source: TradingView

    Although the market indexes are not in Solana’s favor, a few on-chain indicators signal a bit of promise. For example, after a sharp drop, SOL development activity has increased over the past few days, which is a positive signal for the network.

    SOL has also managed to maintain its popularity in the crypto community as its social volume grows. Furthermore, the SOL funding rate on Binance has also increased recently, thus indicating higher interest from the derivatives market.

    Source: Santiment

    Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.

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