According to CryptoPotato, a popular trader using the Twitter handle Bluntz predicts that Solana's price might experience a further decline in the coming weeks. The analyst believes that SOL has recently charted a specific trajectory called the "B wave triangle." This pattern is one of the stages in the Elliott Wave Theory and occurs during the correction phase. In the "B wave triangle," the value of a cryptocurrency creates a series of lower highs and higher lows, suggesting a period of consolidation before making a significant move in any direction. Bluntz sees the potential SOL decrease as a buy-the-dip opportunity, stating that "max bidding" will begin if the price retraces to "low 70s."
Solana's recent price correction coincides with a decline in its on-chain trading volume. According to DefiLlama, the figure has slipped below $700 million in the past three days, far from the peak of over $2.6 billion at the end of December when SOL exceeded the $120 mark. The total volume locked (TVL) on Solana has also decreased since the beginning of 2024. The metric refers to the overall value of digital assets locked or staked in a certain platform. As such, the decrease in SOL's price leads to a reduction in the TVL. It's also possible that assets were flowing out of the network as users unlock to de-risk.
However, it's not all bad news, with Solana marking some progress in the non-fungible token (NFT) field. NFT sales volume for the past week has jumped to almost $70 million, a 55% increase compared to the prior week, and $10 million on a 24-hour scale, a 9% rise. Ethereum continues to be a leader, with $110 million generated in the last seven days. Nonetheless, its increase is around 20%, thus trailing behind Solana.
