Skip to content
- Solana (SOL) drops 2.19% in 24 hours, with trading volume falling 22.01% to $4.16 billion.
- A 7.6% weekly decline shows sustained selling, leading to a continued bearish market sentiment.
- RSI at 49.23 and mixed MACD signals suggest market indecision and uncertainty in Solana’s movement.
Solana (SOL) is currently trading at $164, with a decrease of 2.19% over the past day. Trading volume in the same period has declined by 22.01% to $4.16 billion. Such a fall in volume means that the market activity is slowing down and the investors are losing interest.
Solana has declined by 7.6% in the previous week. This indicates that the cryptocurrency has witnessed sustained selling. The market outlook is pessimistic, as there is no present trend of recovery.
Source: CoinMarketCap
Solana Faces Key Support Test for Rebound
Crypto analyst CryptoPulse highlighted the essential support levels of Solana. In the event that the price drops, a daily order block, a trendline, and the $153–$146 range all support the price at a critical point. If Solana maintains this level, it could rebound and climb to the range of $180 and $200.
However, in the event that Solana trades lower than $146, the next support area would be between $130 and $120. Failure to sustain these levels may cause even deeper drops, and thus a need to concentrate on these price points to determine the medium-term future of the cryptocurrency.
Source: X
Also Read: SharpLink Gaming Adds 83,561 ETH in One Week, Raising Holdings to Over 521K
Trading Volume and Open Interest Drop
CoinGlass data shows that trading has declined to a considerable extent. The total Solana transaction volume declined by 21.47% to $17.81 billion. The open interest of Solana has declined by 3.50% to $9.25 billion.
These figures suggest a conservative stance among investors, as the number of long positions is relatively low. SOL OI-weighted funding rate is at 0.0006%, meaning the market is highly leveraged.
Source: CoinGlass
RSI and MACD Indicate Market Uncertainty
The relative strength index (RSI) of Solana is 49.23, and the market is neutral. According to the index, Solana is not overbought or oversold, and it has no direction. Neutral RSI indicates uncertainty of the market.
MACD (Moving Average Convergence Divergence) is mixed. The MACD line is 0.18 whereas the signal line is -0.42. This shows a slightly bearish outlook, however, the histogram indicates a positive of 0.59. This implies that bearish momentum is weakening and the trend reversal is not yet confirmed.
Source: TradingView
Solana is presently undergoing a challenging phase, marked by a persistent decline in both price and volume. The general market outlook is bearish, and the cryptocurrency is not yet ready to rebound. Traders will keep an eye on the main support areas, and price movements will follow if these levels are maintained.
Also Read: Bitcoin Liquidity Supply Tightens as Accumulator Activity Shows Strength
