- Solana active developers declined by 90%, from 2,500 in January to mere 75, according to data from Token Terminal.
- The Ethereum-alternative is close to a bullish breakout in the ongoing bear market, based on technical indicators.
- Solana price in a downtrend since early November, SOL preparing for a bullish trend reversal.
Solana, popular as an Ethereum alternative, has witnessed a steep decline in the active developers on its blockchain network. After nearly a month-long downtrend, SOL price is ready to break out of its downtrend and wipe out losses from the spreading FTX exchange contagion.
Also read: Samuel Bankman-Fried’s bankrupt FTX exchange executives find $1.24 billion cash, not enough to pay creditors
Solana is ready for a comeback from crypto winter
Solana, a public blockchain platform with smart contract functionality, is ready for making a comeback after a month-long downtrend. SOL, also known as the Ethereum alternative, started its price decline on November 5. The FTX exchange collapse and spreading contagion had a negative impact on Solana price and the altcoin is currently in a descending channel.
The number of active developers in the Solana ecosystem recently witnessed a steep decline. From 2,500 active developers in January the number has declined to 75, a 95% drop within a year. Among all altcoin networks, Ethereum has the highest number of developers, followed by Cardano, Cosmos, Polkadot, and Kusama.
Solana price could witness a bullish breakout in the next two weeks
Solana price chart reveals that the altcoin’s price is in a descending channel. SOL price made three attempts to break out of the upper trendline, however, the confirmation needed for a trend reversal is a close above the trendline.
SOL/USDT 4H price chart
Solana faces two immediate resistances at the 20-day Exponential Moving Average at $12.31 and the 50-day EMA at $12.73. A breakout could imply a run-up to the weekly high of $12.73. If SOL price continues its uptrend, it could hit the bullish target of $31.68.
Invalidation of the bullish thesis could result in a price drop to the monthly low of $10.94. Solana is at risk of further price decline if SOL price plummets and closes below the lower trendline of the descending channel.
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