SOL Expands Drawdown With 8 Consecutive Monthly Candles, What Next For Solana Price?

Key Insights:

• Solana price recorded eight consecutive red monthly candles for the first time in its history.
• Messari data shows Solana led gacha spending volume with $146.6 million in May.
• Traders watch the current monthly close as debate grows over SOL’s next move.

Solana price is back in focus after posting eight straight monthly losses, the longest such streak in its history.

Traders are now watching the current monthly candle closely, while activity on the network continues to remain strong despite the fall in SOL price.

Solana (SOL) Price Records Unprecedented Losing Streak

Solana price has entered a period that few traders expected to see. For the first time since the network was launched, SOL has closed eight monthly candles in a row in the red.

The streak has sparked fresh discussion across the crypto market. Many traders are comparing the current setup with the decline that followed Solana’s 2021 peak.

Crypto analyst Crypto Patel pointed to what happened after SOL reached its former all-time high near $260 in November 2021.

During the bear market that followed, the token eventually dropped to about $8. That decline produced nine red monthly candles, although they did not come one after another.

According to Patel, the ninth red candle marked the bottom before the market turned around. Over the next two years, SOL price recovered strongly and later reached a new record high of $295. The present situation is different in one key area. This time, the losses have come consecutively.

From a recent high around $253, Solana price has fallen as low as $67 while recording eight straight monthly declines. Attention is now turning to the current monthly candle, which is still forming.

Traders want to see how the month closes before making stronger calls on where the market could head next. Another market commentator, Draxen, noted that Solana had never posted this many consecutive losing months through previous bull runs, corrections, crashes, and recoveries.

For that reason, the latest streak is being viewed as an important moment in the asset’s history. Some traders believe the extended decline could mean most of the selling has already taken place.

Others remain cautious and say more weakness cannot be ruled out. For now, the market appears divided as participants wait for a clearer direction.

Solana Gacha Supercycle Drives Network Activity

While the SOL price chart has struggled, activity on the network continues to attract attention. Research firm Messari reported that gacha applications generated strong spending figures during May.

Solana led all tracked blockchains with $146.6 million in gacha spending volume. That figure represented about 64% of the total market.

Polygon came next with $58.8 million, accounting for roughly 26% of overall volume. Combined spending across the sector reached $230.1 million during the month. The numbers show that users are still actively engaging with applications built on Solana.

Following the report, the official Solana account responded with a short message describing the trend as a “gacha supercycle.”

The data stands out because it comes at a time when market sentiment around SOL remains mixed. Even with prices under pressure, network usage has continued to generate significant activity.

SOL Price Expectations Remain Mixed

Views on the next move for SOL price differ widely. Patel believes the current structure could form a longer-term buying area if the market follows a pattern similar to the previous cycle.

He highlighted the $80 to $50 range as an area worth watching should prices move lower. At the same time, traders also recognize that just because something happened in the past doesn’t mean the outcome will be the same in the future.

It’s almost certain that the close of the current month will greatly influence the sentiment of the market.

As of now, the Solana price finds itself in the dilemma of being in one of the worst periods it’s ever been in, but also experiencing strength from its ecosystem. It will most certainly remain the focus of traders going forward into the coming weeks.

The post SOL Expands Drawdown With 8 Consecutive Monthly Candles, What Next For Solana Price? appeared first on The Coin Republic.