As of the latest update, Solana [SOL] was priced at $233, witnessing a minor 1.5% dip in the past 24 hours. Among the top ten cryptocurrencies by market capitalization, SOL has been displaying weak performance, emerging as the sole loser over the past seven days.
Despite the overall positive performance of altcoins, Solana has failed to keep up, resulting in SOL dropping to its lowest level against the leading altcoin, Ethereum [ETH] in six weeks.
Presently, the SOL/ETH ratio has fallen to 0.606 after a rebound from the 0.058 support level on the four-hour chart.
This decline indicates Ethereum’s superior performance compared to Solana, as evidenced by a bearish head-and-shoulders pattern forming and the declining ratio.
Solana’s Price Consolidates amid Weakening Buying Pressure
Over the past week, Solana has been consolidating within the $225 to $243 range, with diminishing trading volume implying a lack of robust trading activity to break SOL out of this range.
The dwindling Chaikin Money Flow (CMF) and the declining Relative Strength Index (RSI) signal a scarcity in buying interest and an increase in selling pressure, potentially leading to a bearish breakout.
If the current selling pressure from the meme coin launchpad Pump.fun persists without buyers stepping in to absorb the sold tokens, SOL might continue to lag behind Ethereum and other altcoins.
Long/Short Ratio Reflects Bearish Sentiment
With Solana’s Long/Short Ratio dropping to 0.89, it is evident that the market sentiment towards SOL is bearish, with a majority of traders holding leveraged short positions in anticipation of further declines.
However, the increased number of short positions raises the likelihood of a short squeeze, prompting traders to remain vigilant for any sudden price surges that could trigger short liquidations and propel the price upwards.