Solana (SOL), a layer-1 blockchain, has seen a recent fluctuation in price after a bearish trend over the past few days. The SOL price has been trading in a descending trend, indicating a broader sell-off in the cryptocurrency market.
At the time of writing, the token trades at $128.99, with a 2.82% decrease over the last 24 hours. According to CoinMarketCap data, the market capitalization currently stands at approximately $59.61 billion, positioning Solana as the fifth-largest cryptocurrency in terms of market cap.
Advertisement
Notably, trading volume has significantly increased, up 252.69% in the last day, reflecting heightened activity possibly linked to its leadership in stablecoin volume.
Solana Price Prediction: Navigating the Bearish Waves
Solana has witnessed a significant downturn, declining nearly 11% in the last seven days. The cryptocurrency, once traded above $145 this week, now struggles around $120, indicating a bearish trend.
This drop followed a failure to sustain support near $150, with trading volumes peaking during the sell-offs, a clear indicator of heightened selling pressure.
Over the past month, Solana’s value has fluctuated, decreasing by 23% as both bulls and bears vied for control. This marks the steepest decline among the top ten cryptocurrencies during this period. Even as the broader crypto market faces a downturn, major players like Bitcoin, Ethereum, Cardano, and BNB have also eroded their market values.
Open Interest Trends In SOL
Key financial metrics indicate that Solana is facing a challenging market environment. According to data from Coingalss, open interest in SOL futures has dropped significantly, from over $3.5 billion in mid-May to less than $2 billion.
This decrease aligns with a dip in Solana’s price, suggesting that traders are either exiting their positions or are being forced out due to liquidations. Such trends point towards potential further declines in the asset’s value.
Helius Labs co-founder and CEO Mert Mumtaz recently expressed a pessimistic view of the cryptocurrency sector. He announced the liquidation of all his crypto holdings and voiced concerns that the downtrend might persist into the coming week.
I sold everything I had. Every coin I owned is gone. I’m completely out of the cryptocurrency market, I can’t take it anymore. Aggressive dumping, manipulation, everything is so intense. crypto is over, I am out, I am very glad to meet you, life has dreams, each is wonderful. pic.twitter.com/8NQIWVmQBb
— mert | helius | hSOL (@0xMert_) June 24, 2024
On a more technical note, Solana has been advancing its technology by integrating ZK compression at the L1 layer. This development is expected to notably enhance scalability, cut costs, and revolutionize blockchain technology.
Technical Indicators Shows A Bearish Trend
If the downward trend in SOL’s price persists, it could approach the $110 support level soon. This potential decline would indicate a significant shift in market sentiment. Should the trend continue, reaching $110 might reflect broader changes in investor attitudes.
If bullish trends strengthen, SOL could climb back to the $130 mark. With further positive momentum, its value may surge past $140 in the next bullish run.
The daily technical indicators for SOL/USD show a fluctuating pattern with recent price declines. The MACD (Moving Average Convergence Divergence) presents a bearish signal, with both MACD and Signal lines remaining below the zero line. The RSI (Relative Strength Index) at 30 suggests that the currency might be approaching oversold conditions, potentially signaling a near-term rebound if buyers step back in.
Read More
Advertisement
