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The volume inflow has dropped by over 60% from $4.5 Billion to $2.06 indicating the losing interest of the sellers. - 2
Solana may get the buyers back near the psychological level of $150.
Solana crypto has been in a correction phase for the last two weeks after bulls failed to surpass the $190 level. The impending Federal Reserve interest rate decision and Consumer Price Index (CPI) data have added to the market’s volatility, pulling Solana’s price toward the $150 mark.
At the time of writing, SOL was exchanging hands close to $152.60 recording a 2.16% rise intraday. While the recent price crash has raised concerns among the investors some are looking at it as a buy-on-dip opportunity.
However, it’s essential to determine whether now is the opportune moment to initiate a long position or if further price reductions are on the horizon. It may help to extract more returns with less risks.
Volume Inflow Dropped Significantly!
Over the past two weeks, Solana crypto has been declining all the way from $190 to CMP at $150. The volume analysis shows that there has been a significant decline in the volume inflow in the recent sessions.
The volume inflow has dropped by over 60% from $4.5 Billion to $2.06 Billion. The drop in the volume inflow indicates the losing interest of the bears. Also several indecisive candles may be observed on the charts which furthers add confirmation to it.
The volume to market cap ratio at 3.51% suggests low volatility. SOL ranks 5th in the overall crypto market with a live market capitalization of $70.23 Billion.
Can Bulls Reclaim the $170 Level?
The daily chart witnesses the formation of a declining parallel channel pattern. Currently, the price has neared a psychological level of $150 which may act as a strong support. The bears hold the grip of the short-term trend indicating the price at a risk of falling more.
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Now, until the price is maintained in the channel, it may continue to form lower highs and fall more. However, if the bulls stage a comeback the SOL may snip off the losses and reclaim the $170 level.
The 200 day Exponential moving average points to a positive trend in the long run while the short term EMAs 20 and 50 day points towards an ongoing correction in the short run.
Conclusion
Solana (SOL) is experiencing a correction due to market volatility heightened by Federal Reserve and CPI data anticipation. Currently trading around $152.60, The drop in volume inflow suggests the losing interest of the bears.
Moreover, technical analysis shows a declining channel pattern, with $150 as potential support. If the bearish trend prevails, the price may decline further. whereas, a bullish reversal could lead to recovery towards $170. Long-term trends are positive, but short-term indicators suggest a correction.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2024/06/12/solana-crypto-retreats-near-150-level-a-buy-on-dip-opportunity/