$5.18 Billion Solana (SOL) Stun Market Bulls, Here’s Why

Solana (SOL) has shed over $40 billion in cryptocurrency in the last seven days. Amid this bearish pressure on SOL, traders are taking precautions to reduce liquidation risk on their bets. Despite this, the volatility has impacted Solana investors.

SOL faces bearish pressure, but traders remain active

According to CoinMarketCap data, traders betting on a favorable price increase have seen $5.18 billion worth of Solana shuffled on trading platforms. While the massive price drop has caused losses, the optimism in the volume boost has restored investors’ confidence in the asset.

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Within the last 24 hours, SOL has declined by 4.35%, currently trading at $137.17 as of press time. This price drop has also impacted Solana’s market capitalization, registering a 2.90% dip to $70.24 billion.

Despite these bearish signals, Solana investors remain optimistic about a future price action that could yield profit. Trading volume has seen a 10.25% increase to $5.18 billion as market participants actively engage in moving the coin.

Although SOL is currently testing the $136 support level, some analysts suggest the asset might be oversold, as indicated by its RSI. If this is the case, Solana could post a recovery soon. Based on historical precedence, some analysts anticipate a rally by late March or early April.

Will Solana regain momentum?

As earlier reported by U.Today, Solana’s growth has plummeted by approximately 88%. This massive decline might affect the ecosystem, given that the number of new Solana addresses has also declined.

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Stakeholders are betting that SOL’s inclusion on the U.S. Strategic Crypto Reserve list might trigger a shift. They hope more users will embrace SOL, fueling increased buy-ups.

Meanwhile, the planned launch of SOL futures by CME Group, a Chicago-based trading giant, could positively affect Solana’s long-term market value. The move has been described as critical to the regulatory approval of the spot Solana exchange-traded fund (ETF) in the U.S.