Solana Crashes 49% in Market Value, but Unique Bullish Divergence Appears

The crypto market continued to trade in red early Saturday, extending a sell-off fueled in part by liquidity shortage that followed October's sell-off and liquidation event.

At the time of writing, Solana was trading unchanged in the last 24 hours at $125.94, and down 11% weekly, extending a drop from Nov. 14 into the fourth day.

Solana has largely declined since its Sept. 18 high of $253. Taken from this peak, on-chain analytics platform Santiment noted that Solana's market value has now fallen about 49%.

Amid the declines, Solana lost support at its daily moving averages 50 and 200 at $179.99 and $179.93.

The recent drop has confirmed a death cross, which occurs when a short-term moving average (MA 50) falls below the long-term MA (the moving average 200) on the daily chart. Amid all these, a positive signal has flashed in the market as Solana marks a unique bullish divergence.

Bullish divergence emerges

According to Santiment, Solana's market value has now fallen by 49% from its local top back on Sept. 17. However, there has been a unique bullish divergence as the number of interacting addresses is rising as well as new SOL wallet creation.

Solana's address activity has come alive to a 10-week high with on-chain activity gaining positive momentum, signaling a bullish divergence with respect to price.

Santiment noted that increasing SOL activity in spite of declining prices might foreshadow a price reversal, it describes it as an "eventual strong turn around."

Meanwhile, Solana ETFs continue to see inflows as demand grows even during market drops.

In a major milestone, the Bitwise Solana Staking ETF (BSOL) has crossed $500 million in AUM in its first 18 days of trading. The fund’s rapid rise has solidified its position as the largest Solana ETP in the U.S.