The recent downward trend in the cryptocurrency market has significantly affected Solana (SOL), causing a 4% drop in its value over the past 24 hours, with the price now trading at $137. Additionally, Solana’s trading volume has plunged by 12%, reflecting diminishing market interest and a lack of trader confidence.
Technical Indicators Show Buyer Weakness
Technical analysis of Solana reveals a decline in buyer interest. The Chaikin Money Flow (CMF) indicator on the four-hour chart has remained negative, indicating persistent selling pressure. The Relative Strength Index (RSI) further corroborates this, sitting at 33, which suggests that bearish sentiments dominate the market. Access COINTURK FINANCE to get the latest financial and business news.
Hope for a Potential Recovery?
Solana’s inability to recover from the $138 support level casts a shadow over the market. Although there were attempts by the RSI indicator to rise above the signal line, consecutive red candles have dampened recovery hopes. A breakthrough above the $138 level could aim for the 0.382 Fibonacci resistance at $146, but sustaining this momentum remains uncertain unless the $152 level is breached to confirm a trend reversal.
Positive Developments in Solana Network
Despite weak price movements, Solana’s on-chain data offers a silver lining. Data from Santiment on the X platform revealed a 33% increase in the network’s total development activity monthly. Moreover, DeFiLlama reported a $1 billion increase in Solana’s total value locked (TVL) in the last month, indicating network strength despite the price drop.
Key Insights for Investors
– Technical indicators signal a bearish market.
– A breakthrough above $138 is crucial for recovery.
– Development activity and TVL are on the rise.
– Long-term sentiment remains cautious.
Concerns for Long-Term Investors
Despite positive on-chain metrics, long-term investors remain skeptical. Coinglass data shows the Long/Short ratio is below 1, indicating short-term traders’ dominance over Solana this week. The failure to maintain the $138 support level is concerning, and whether buyer interest will return remains a key factor in Solana’s future price trajectory.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/solana-faces-price-drop-and-waning-interest