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.
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.