Expectations of Solana Bouncing Back to $200 Heighten Following Recent Price Drop
As of now, Solana (SOL) is currently valued at $197.05, witnessing an 8.68% decrease within the last 24 hours while showing a 4.31% increase over the past week.
The trading volume of the cryptocurrency has spiked to $6.69 billion in a day, signaling significant market interest.
With a circulating supply of 480 million SOL, the coin’s market capitalization is estimated at $95.54 billion at the time of this report. The price of SOL has seen fluctuations, ranging from $193.90 to $215.98 in a span of 24 hours, with a weekly range between $188.79 and $221.35.
The current value is approximately 24.9% lower than its peak of $263.21, achieved on November 23, 2024, and encountering resistance near crucial levels.
Indicators Suggest a Bearish Trend
Recent price movements exhibit a break below the positive trendline and Fair Value Gap (FVG), with the 200-day Moving Average (MA) at $217.96 serving as a formidable barrier.
The immediate support level is around $195.72, with a potential downside target at $180 if the support fails.
A potential uptick in volatility is indicated by MA convergence. Traders are closely observing whether SOL can surpass $200 and progress towards the $220 resistance level.
If the bearish trend continues, the market may test lower support levels, introducing uncertainty.
Derivatives Market Signals Traders’ Caution
Data from Coinglass reveals a mixed sentiment in derivatives markets, with a notable increase in trading volume to $12.62 billion (up 94.85%) and a drop in Open Interest (OI) to $6.03 billion (down 10.68%), indicating reduced leveraged positions.
Options activity has also surged, with a 447.63% rise in volume to $902,320 and a 14.97% increase in OI to $1.97 million.
Analysis of liquidations indicates that a higher value of long position liquidations occurred ($10.62 million) compared to short positions ($4.64 million), suggesting traders anticipating a rebound were unprepared for the price decline.
Most liquidations took place on platforms like Binance and Bybit, predominantly impacting long positions.
Strength in SOL’s Network Activity
According to DefiLlama, Solana’s Total Value Locked (TVL) is currently $8.79 billion, marking a 7.59% decline in the past 24 hours.
On Solana, the stablecoin market capitalization amounts to $5.56 billion, with the network generating $4.35 million in fees and $2.18 million in revenue within the same period.
Network activity remains robust, recording 4.74 million active addresses and 62.43 million transactions in the last 24 hours.
Despite recent price fluctuations, Solana continues to attract institutional interest, illustrated by initiatives like Coinbase’s liquid staking integration with the network, sustaining market enthusiasm.
Traders and investors are closely monitoring Solana’s movement around $197, focusing on technical levels and network activity to gauge potential recovery or further decline.