I just looked at Solana data this week and found something interesting. The price is continuously falling to $86, even though network activity has surged 72% over the past month with more than 100 million active addresses. Transactions have increased by 36%, and the fees generated are also double compared to Ethereum. So why is the price still dropping?

If you look at the technical forecast chart, Solana has formed a head-and-shoulders pattern since December 2023, indicating a potential further decline. The price has already broken through the 61.8% Fibonacci level at $118 and is now in a weak zone. The MACD and RSI indicators continue to fall, and the moving average is also starting to show a death cross. The most likely scenario is that the price could drop to the 78.6% Fibonacci level at $70 before rebounding.

Futures data also shows warning signs. Open interest has dropped sharply from $17 billion in September to $6.35 billion now. The funding rate remains negative, meaning traders are bearish. Liquidations also spiked to $191 million in early February. So even though the Solana network is super active and ETFs keep adding assets, the technical forecast chart still indicates short-term price pressure. Maybe this is an opportunity to accumulate for those who believe in long-term fundamentals?