Solana’s [SOL] new upgrade, a much-needed boost for its NFT space? Delving into…

• Ev.io, Fab Punks, and Primates were the top NFT collections on Solana last week.
• SOL’s price plummeted substantially, and market indicators were bearish. 

Solana’s [SOL] NFT space remained pretty dormant in terms of sales last month. CRYPTOSLAM’s data revealed that Solana NFT sales volume increased marginally by just over 1% in the past 30 days.

Read Solana’s [SOL] Price Prediction 2023-24

A major reason behind this could be the migration of y00ts and DeGods to Polygon [MATIC] and Ethereum [ETH], respectively.

However, Solana Mobile, a subsidiary of Solana Labs, made a major announcement, which can help SOL’s NFT ecosystem flourish in the coming weeks. 

The announcement revolved around Solana Mobile Saga, an Android mobile phone with unique functionality and features tightly integrated with the SOL blockchain. The core idea behind Saga was to make it easy and secure to transact in Web3 and manage digital assets, such as tokens and NFTs.

Solana NFTs’ current state

After the departure of SOL’s popular NFT collections, their spots were taken by others. As per DappRadar, in the last seven days, Ev.io, Fab Punks, and Primates were the top NFT collections on the network. The daily active users on SOL’s NFT marketplaces were also stable.

Source: Dune

However, Santiment’s chart revealed that the total NFT trade volume in USD declined slightly last week. In addition to that, SOL’s total NFT trade count plummeted considerably, which raised concerns.

Source: Santiment

Can Solana Mobile Saga also help SOL?

The bearish market condition pushed SOL’s price down substantially over the last week. According to CoinMarketCap, SOL’s price has declined by over 11% in the last seven days.

At press time, it was trading at $22.08, with a market capitalization of more than $8.6 billion. A look at SOL’s daily chart revealed that the Solana Mobile Saga’s update might not reflect anytime soon, as investors can expect a few slow-moving days. 

Source: TradingView

The MACD displayed a bearish crossover. SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) both registered declines and then moved sideways, decreasing the chances of a sudden uptrend.

The same trend was also followed by the Chaikin Money Flow (CMF). Nonetheless, the Exponential Moving Average (EMA) Ribbon continued to favor the bulls as the 20-day EMA was above the 55-day EMA. 

How much are 1,10,100 SOLs worth today?

Demand declined in the futures market

Not only the market indicators, but a few of the metrics also did not suggest the possibility of a trend reversal. For instance, SOL’s Binance funding rate declined last week, reflecting less demand for the token in the derivatives market.

Token Terminal’s data reveal that SOL’s P/S ratio registered an increase. This too was bearish, as it indicated that the asset was overvalued.

Source: Santiment