Over the past 24 hours, Solana (SOL) has experienced a minor pullback, similar to many other cryptocurrencies. However, an analysis indicates that it is essential for the token to remain within a specific range to support its price.
Will SOL manage to achieve this, or could the end of 2024 see a decline in SOL’s market capitalization?
The Importance of Solana’s Threshold!
Following a nearly 5% increase in price over the week, SOL’s value dropped in the past 24 hours. Currently, SOL is being traded at $193, with a market cap exceeding $92 billion.
Renowned crypto analyst, Ali Martinez, shared insights on Twitter, emphasizing the significance of SOL maintaining its price within the $190-$180 range.
A breach below this level could potentially lead to a further price decline, risking losses for many investors.
Further analysis by CryptoCrypto on Solana’s on-chain data suggests the possibility of SOL falling below this range in the near future.
Understanding SOL’s Current Situation
Based on our assessment of Santiment’s data, SOL’s price may continue to decrease due to a decrease in trading volume over the past week, indicating a persisting bearish trend.
Despite the declining volume, Solana’s Social Volume remains high, highlighting its popularity in the crypto market.
Although the volume is decreasing, SOL’s Long/Short Ratio has shown an increase, indicating a higher number of long positions compared to short ones, which is seen as a positive sign.
Additional data from Hyblock Capital analyzed by CryptoCrypto reveals another positive metric, suggesting that Solana may not drop below the crucial trading range.
The buy volume for the token reached 86 on December 29th, with values closer to 100 indicating strong buying pressure that positively influences an asset’s price.
The increasing buying pressure on Solana is also supported by technical indicators, with the Relative Strength Index (RSI) showing a slight uptick, signaling heightened buying activity.
However, the Chaikin Money Flow (CMF) has decreased recently, indicating a reduction in buying activity.
Whether these factors will drive Solana’s price below $180 in the coming days remains uncertain, with time being the ultimate determinant.