Over the past 24 hours, Solana (SOL) experienced a minor downturn, mirroring the trend seen in numerous other cryptocurrencies. Nevertheless, recent insights suggest that maintaining a specific price range is vital for SOL’s price stability.
Will SOL manage to uphold this range, or could the conclusion of 2024 potentially witness a decline in SOL’s market capitalization?
Key Price Level for Solana
Following an almost 5% increase in price over the week, SOL saw a slight decrease in value recently. At present, SOL is being traded at $193, boasting a market capitalization exceeding $92 billion.
An analysis by Ali Martinez, a well-known crypto analyst, highlighted the significance of SOL staying within the $190-$180 price range to avoid negative implications on its value.
In the event of a drop below this threshold, the token might face further price declines, potentially leading to investor losses.
A deeper examination of Solana’s on-chain data by CryptoCrypto aimed to determine the feasibility of SOL slipping below this critical range shortly.
Current Trends with SOL
Following our evaluation of Santiment’s data, it’s projected that SOL’s price could continue declining as its trading volume receded over the past week. A decrease in this metric points towards an ongoing bearish trajectory.
Despite this, Solana’s Social Volume remained robust, indicating the token’s sustained popularity across the crypto market.
Despite dwindling volume figures, SOL’s Long/Short Ratio displayed an increase, signaling a prevalence of long positions over short ones, a bullish signal.
An analysis of Hyblock Capital’s data conducted by CryptoCrypto unveiled another positive indicator suggesting that Solana might successfully remain above the critical trading threshold.
Notably, SOL’s buy volume peaked at 86 on December 29. A value nearing 100 signifies heightened buying pressure, which typically benefits an asset’s price.
Further reinforcement of increasing buying pressure on Solana was indicated by a technical analysis. The Relative Strength Index (RSI) for the token exhibited a slight rise, indicating heightened buying activity.
However, the Chaikin Money Flow (CMF) experienced a recent dip, signaling reduced buying activity in the market.
Whether this combination of factors will lead to SOL’s price dropping below $180 in the upcoming days remains uncertain, with time being the ultimate arbiter.