- Solana failed to see a surge in price despite bullish trend in the market.
- Overall volume at which SOL was being traded at also fell.
Amidst the prevailing bullish sentiment in the cryptocurrency market, Solana [SOL] has deviated slightly from the general trend, displaying red signals in both price and volume over the last 24 hours.
As traders evaluate potential shorting opportunities, new data sheds light on crucial aspects influencing SOL’s current standing.
Looking at the price
In the recent 24-hour span, SOL experienced a substantial decline in trading volume, plummeting by 21.54%. Simultaneously, the price of SOL dropped by nearly 1% at press time, signaling a deviation from the ongoing bullish trends in the broader crypto market.
Following a test of the $118.33 resistance level, SOL faced a notable setback, witnessing a 6.72% decline.
The Chaikin Money Flow (CMF) for Solana also witnessed a decline during this period.
A decreasing CMF suggests a potential shift in money flow and liquidity, introducing concerns about SOL’s short-term price dynamics. These factors raise questions about the immediate future of SOL’s price trajectory.
Contrastingly, the On-Balance Volume (OBV) of SOL continued its upward trajectory. A growing OBV indicates an accumulation of volume on positive price days, potentially suggesting sustained buying interest despite recent setbacks.
Source: Trading View
Social engagement
Social media dynamics also come into play as recent reports highlight significant social hype around SOL.
Samuel Benjamin Bankman-Fried, co-founder of FTX, convicted of fraud, reportedly encouraged prison guards to invest in SOL. This update caused a stir online. The attention gained from this could impact SOL’s price temporarily.
Delving into the Solana ecosystem, the number of daily transactions on the network surged from 20 million to 31 million. This uptick in activity demonstrates increased engagement and utilization of the Solana blockchain, a positive signal for the network’s overall health.
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In Solana’s decentralized finance (DeFi) sector, the Total Value Locked (TVL) continued its upward trajectory. Growing TVL indicates increasing confidence and capital inflow into Solana’s DeFi projects, fostering a robust ecosystem.
The spike in activity could be attributed to the popularity of memecoins being traded on the Solana network. Even though SOL’s price may decline, the overall health of the ecosystem could help SOL bounce back going forward.
Source: Artemis