Solana Investors Discuss Potential Future Moves as SOL Price Targets $249
Over the weekend, Solana [SOL] experienced volatile price fluctuations. After a 7.22% decrease over the past week, the token saw an additional 3.22% drop in the last 24 hours, stabilizing at $235.
The recent decline hinted at signs of market fatigue, with buyers taking a step back to wait for clearer indicators.
While some view the pullback as a regular correction, others caution that it could signal the start of a more significant downturn.
SOL Clears Low Leverage Liquidity, Sets Sights on Important Goal
According to Hyblock, SOL seems to be navigating through a phase of low-leverage liquidity as its price trends downwards.
This behavior often implies that SOL is ridding itself of low-leverage liquidity levels, potentially preparing for an upward trajectory.
If this scenario unfolds as predicted, Hyblock’s chart indicates that the next significant target for SOL is above $249, where a substantial liquidity cluster might ignite a price surge.
Nonetheless, the future outlook remains uncertain. Various market indicators are sending contradictory messages—some indicating further downside potential, while others hint at a possible upturn for SOL.
Market Witnesses Strong Selling Pressure—Could this be a Retracement?
On-chain metrics revealed a surge in selling pressure, as both price and trading volume decreased. Trading volume has fallen by 9.75%, currently standing at $3.72 billion.
Coinglass’s Long-to-Short Liquidation model highlighted a bearish leaning in the derivatives space, with the long-to-short ratio at 0.8681, significantly below 1, indicating a surplus of short (sell) contracts over long (buy) contracts.
As this ratio falls below 1, short positions become increasingly dominant.
This sentiment is evidenced in the liquidation data from the past 24 hours, showing $6.4 million in long liquidations compared to only $348,600 in short liquidations.
This stark contrast underscores a market preference for downward momentum.
Given these dynamics, SOL faces continued downside risks, with bearish sentiment outweighing any inklings of a potential recovery.
Bulls Exhibit Signs of Activity Amid Market Volatility
Despite recent bearish trends, bullish behavior has emerged, evident in a 2.89% rise in Open Interest, totaling $5.28 billion.
Open Interest measures unsettled derivative contracts in the market. An increase typically signals restored trader confidence and suggests a market poised for a potential rally.
Moreover, Exchange Netflow data reveals a shift in favor of bulls, with substantial liquidity, mainly in SOL, moving from exchanges to private wallets.
This outflow creates a possible supply shortage, escalating upward price pressure and increasing the probability of a rally or retracement.