Solana [SOL] was priced at $197.05 at the time of reporting, marking an 8.68% drop in the past 24 hours while showing a 4.31% increase over the last week.
Simultaneously, the digital asset witnessed a significant surge in trading volume, reaching $6.69 billion within a day, highlighting strong market interest.
As of now, with a circulating supply of 480 million SOL, the cryptocurrency’s market capitalization reached $95.54 billion. The price of SOL ranged from $193.90 to $215.98 in the past 24 hours, and over the week, it fluctuated between $188.79 and $221.35.
The current value of SOL is 24.9% lower than its all-time peak of $263.21, achieved on November 23, 2024, facing crucial resistance levels.
Indicators Signal Bearish Movement
The recent price action displayed a breach below the positive trendline and Fair Value Gap (FVG). The 200-day Moving Average (MA) at $217.96 emerged as a strong resistance point.
Near-term support is seen around $195.72, and if this level fails, a potential downside target could be $180.
The convergence of MAs suggests a probable uptick in volatility. Traders are closely watching the $200 mark, and a potential move towards the $220 resistance level.
A sustained bearish trend could further test lower support levels, introducing uncertainty in the market.
Derivatives Data Highlights Trader Caution
Data from Coinglass indicates a mixed sentiment in the derivatives market. Trading volume surged by 94.85% to $12.62 billion, while Open Interest (OI) declined by 10.68% to $6.03 billion, suggesting reduced leveraged positions.
Options activity also saw a significant increase, with volume rising by 447.63% to $902,320 and OI up by 14.97% to $1.97 million.
Liquidation data reveals that $10.62 million in long positions were liquidated compared to $4.64 million in short positions, indicating that traders who anticipated a rebound were taken by surprise due to the price decline.
The majority of liquidations occurred on Binance and Bybit, with long positions experiencing more significant losses.
SOL’s Network Strength Persists
According to DefiLlama, Solana’s Total Value Locked (TVL) amounts to $8.79 billion, marking a 7.59% drop in the last 24 hours.
The stablecoin market capitalization on Solana sits at $5.56 billion, with the network generating $4.35 million in fees and $2.18 million in revenue during the same period.
Network activity remains robust, with 4.74 million active addresses and 62.43 million transactions logged in the past day.
Despite recent price fluctuations, increased institutional participation like Coinbase’s integration of liquid staking with Solana continues to bolster market interest.
While Solana hovers around $197, market participants are closely monitoring key technical levels and network activity for signals of a potential recovery or further downturn.