Solana (SOL) price reached an all-time high of $264 on November 22 but has since entered a correction, dropping nearly 10% in the past 24 hours. Indicators like BBTrend and DMI show increasing bearish momentum.

The EMA lines, while still showing a bullish structure, hint at a potential death cross, which could intensify the correction if it forms. As SOL approaches key support levels, its ability to recover bullish momentum will determine whether it revisits resistance at $248 or faces further declines toward $194.

SOL BBTrend Is Negative for the First Time in 8 Days

Solana BBTrend has turned negative for the first time since November 18, currently sitting at -0.54. The BBTrend, or Bollinger Bands Trend, measures the momentum and direction of price movement relative to the Bollinger Bands, with positive values indicating upward trends and negative values suggesting downward trends.

This shift to negative territory signals increasing bearish momentum, marking a stark contrast from its recent peak of 10.8 on November 20, just before SOL reached a new all-time high.

Although -0.54 might not seem significant, it reflects a clear change in market sentiment, with SOL now down nearly 10% in the last 24 hours.

If the BBTrend continues to decline, it could amplify the bearish pressure, pushing SOL into a deeper downtrend. This would likely lead to further price corrections as sellers dominate and the market loses confidence in its short-term recovery potential.

Solana Downtrend Is Getting Stronger

SOL DMI chart shows its ADX rising to 27.24 from 21 yesterday, signaling a strengthening trend momentum. The ADX, or Average Directional Index, measures the strength of a trend, with values above 25 indicating a significant trend, whether bullish or bearish.

In Solana’s case, the rising ADX reflects increasing momentum in its current downtrend, suggesting that selling pressure is intensifying.

The DMI indicators further reinforce this bearish sentiment, with D+ at 12.7 and D- at 36.6. This large gap shows that bearish forces (D-) significantly outweigh bullish ones (D+).

An ADX above 25 and growing in a downtrend indicates that the negative momentum is solidifying. If this trend continues, Solana price could see further declines as the market tilts heavily in favor of sellers.

SOL Price Prediction: No New All-Time Highs For Now?

SOL EMA lines present a pivotal scenario, with the short-term lines still positioned above the long-term ones, indicating a lingering bullish setup.

However, the shortest-term EMA lines are trending downward and nearing a potential crossover with longer-term lines, signaling the possible formation of a death cross. This pattern often indicates a shift from bullish to bearish momentum, raising caution among traders.

If a death cross forms, SOL’s correction could intensify, leading the price to test its nearest support at $204. Should this level fail to hold, SOL price could decline further, targeting $194.

On the other hand, if Solana regains bullish momentum and reverses the trend, it could challenge resistance at $248. Breaking above this level could propel SOL price to surpass $264, achieving a new all-time high and reinforcing bullish sentiment in the market.

Centralized exchange Kraken will discontinue its NFT marketplace to allocate resources to upcoming projects. Users can no longer list, bid, or sell items after November 27, 2024.

However, withdrawals will remain available until the marketplace closes entirely on February 27, 2025.

Kraken’s NFT Platform Fails to Deliver on Expected Growth

Kraken notified users of this decision earlier today through an emailed statement. Launched in November 2022, Kraken’s NFT platform faced challenges as the market for digital collectibles weakened. The landscape had become extremely oversaturated in the past few years. 

Throughout 2024, 98% of NFT collections experienced little or no trading activity. Only 0.2% of new NFT drops generated profits, while most lost over 50% of their value within days.

On average, NFT holders are enduring a 44.5% loss since 2023. The average lifespan of an NFT is now 1.14 years—significantly shorter than the 2.85-year lifespan of typical crypto projects. Last year, nearly one-third of NFT initiatives failed, the highest rate recorded for the sector.

So, Kraken’s decision does not come as a surprise. It’s evident why the exchange has decided to reallocate its resources to other key developments. 

The US-based crypto exchange recently announced plans to optimize its policy and list 19 new tokens. This also includes the Donald Trump-inspired ‘TRUMP’ token, along with other popular meme coins. 

Amid the downturn, there are signs of recovery. Telegram reported a 400% surge in NFT activity during Q3 2024, driven by the integration of NFTs into gaming platforms like Hamster Kombat. By September, daily wallet transfers surpassed one million.

Additionally, an address linked to Vitalik Buterin, the co-founder of Ethereum, recently minted 400 Patron NFTs on Base. This sparked fresh discussions about the potential revival of NFTs as the sector looks for new use cases.

There has been a major uplift in the Web3 metaverse space, with several tokens recording significant highs in November. 

Here are some of the most notable developments in the metaverse crypto scene: Decentraland launched its official desktop app, The Sandbox hosted its biggest reward season, and Floki further delayed its highly anticipated metaverse game. 

Decentraland Launches Desktop Application

The metaverse platform Decentraland launched its official desktop app in October – Decentraland 2.0. Previously, the platform was only accessible through a web browser. 

The desktop application was launched for both Windows and macOS, making the virtual world more accessible to users. 

Following this launch, Decentraland hosted its annual music event on the new and improved virtual space. Several notable musicians performed at the event, including popular EDM artist ‘Whipped Cream’. 

These developments saw increasing engagement in the metaverse platform, which was reflected in MANA’s market performance. The token surged by nearly 100% in November, reaching its highest price in over six months. 

The Sandbox (SAND) Surges Nearly 150% in a Month

Metaverse activity strongly picked up in November, as The Sandbox’s SAND token surged over 140% this month. SAND is currently the third largest metaverse token according to CoinGecko. 

This recent surge is likely being driven by the platform’s Alpha Season 4. The Sandbox announced its biggest reward pool ever this season, with a $2.5 million SAND reward available for participants. 

Users would receive these rewards through various quests and challenges on the metaverse. Several major brands and games contributed to creating these challenges. These included brands such as Playboy, Deep Sea, Voice, and Hellboy among others. 

These initiatives influenced increased engagement on The Sandbox, driving SAND’s trading volume to $1.91 billion.  

Meme coin project Floki has delayed the mainnet launch of its play-to-earn game, Valhalla, to early 2025. The game was originally set for release this November.

According to the latest announcement, the multiplayer metaverse project will now launch in Q1 2025. Floki has developed the game over three years to improve meme coin’s utility. The delay gives the team more time to collaborate with auditing partners.

“To ensure absolute safety of assets and users within the Valhalla ecosystem, we commissioned two of the most respected auditors in this space—Hacken and OpenZeppelin—to review the Valhalla contracts prior to mainnet launch. They recently made a number of suggestions that will help further enhance the security of the platform and safety of users and assets within the Valhalla ecosystem,” Floki wrote on X (formerly Twitter).

However, the announcement saw FLOKI’s price drop nearly 3% on Tuesday. Floki stated that it aims to ensure a smooth launch by extending the timeline.