Solana
Will Solana’s rally continue despite falling below $180?
- SOL’s brief rally past its resistance on May 20 was short-lived.
- Although its price has declined in recent days, SOL accumulation continues to climb.
by Solana [SOL] The rally above its short-term resistance level of $185 on May 20 was interrupted by selling pressure, which pushed the coin’s price below $180.
After the altcoin’s price hit a one-month high of $187.83 on May 21, it began a downtrend and has since fallen 6%. According to CoinMarketCap data, at the time of writing, SOL was trading at $177.
SOL bears are on the move
As expected, the decline in SOL price over the past few days has led to a decrease in its daily trading volume. At $3.74 billion at the time of writing, the altcoin’s daily trading volume has fallen 20% since peaking at $5 billion on May 21.
As selling pressure intensified, the coin’s weighted sentiment shifted from positive to negative, confirming the change in market sentiment from bullish to bearish. According to Santiment data, SOL’s weighted sentiment was -0.13 at the time of writing.
Source: Santiment
When the weighted sentiment of an asset is negative, there is much more negative buzz on social media than positive discussion.
Due to this price drop, the coin’s futures market has seen more long positions liquidated than short positions over the past two days.
According to Coin glass According to the data, between May 21 and 22, $13 million in long positions were liquidated. In contrast, only $5 million in short positions were wiped from the market during the same period.
Source: Coinglass
Additionally, during this period, SOL futures open interest fell 10%. This showed that traders exited their positions without opening new ones due to the falling price of the coin.
The bulls stand firm
However, despite SOL’s price action in recent days, its funding rate has remained positive. At press time, SOL’s blended funding rate was 0.0159%.
When an asset’s futures funding rate is positive, it suggests strong demand for long positions. This means that despite SOL’s current decline, more and more traders are buying the coin and expecting a rally.
Read by Solana [SOL] Price prediction 2024-25
The increase in SOL’s accumulation was taken from the rise in its Relative Strength Index (RSI) at press time.
Source: SOL/USDT on TradingView
At 61.94, SOL’s RSI suggested that its spot market participants preferred to accumulate more coins rather than sell.
Following: PEPE soars 100% in 30 days, but its bull run could soon end