Despite a declining price, the Solana (SOL) network continues to attract new users, with wallet growth increasing for five consecutive months. Data also shows a surge in short positions and a significant drop in social activity, which analysts note often precedes market bottoms.
The Solana network is experiencing pressure from urgent validator updates and a price decline. However, data from Santiment indicates consistent growth in new wallet addresses over the past five months during this price drop. This suggests ongoing accumulation and ecosystem adoption, which could lay a foundation for future rallies.
Tracking of new wallet addresses shows Solana continues to add participants despite its price decline. Historically, rising network activity during price slumps can signal structural adoption.
Analysis shows a sharp increase in short positions on SOL due to market bearishness. Negative funding rates have previously triggered short squeezes leading to price increases.
While not guaranteed, the current data suggests crowded short positions could increase volatility. This may present a strategic opportunity as buyers potentially return.
Solana’s social dominance has declined since its peak in September 2025. Less chatter on social platforms suggests subdued retail interest, which often precedes price bottoms.
The combination of rising network growth, high short concentration, and low social activity creates a specific market setup. This environment may be conducive to contrarian action.
