Solana’s value is going down because fewer investors are interested in it. This happened after it couldn’t get past an important level where it faced strong resistance. This has made investors feel less confident, and now the price is staying around $100.
This drop happened after Bitcoin also couldn’t go past $53,000 and many investors had to sell their assets, which made the market go down. Right now, the data from how Solana is being used suggests that its price might drop even more soon, showing a pattern that indicates it might keep going down.
Solana Faces Selling Pressure Amid Market Correction
In the past 24 hours, the cryptocurrency market witnessed total liquidations exceeding $300 million, with buyers selling off positions valued at more than $220 million. Particularly, Solana saw long positions worth over $10 million being liquidated, leading to immediate selling pressure on the SOL price and a drop to the support around $100.
The recent decline in Solana’s price stemmed from investor anxiety following a market correction when it was nearing its peak values. This downturn was influenced by Bitcoin and Ethereum’s failure to maintain their positions around $53,000 and $3,000, respectively.
On-chain data indicates a downward trend in Solana’s active addresses, decreasing from a high of 1.02 million to 691,000, marking a nearly 30% decrease over recent weeks. This reduction in active addresses suggests diminishing confidence in Solana, potentially affecting the trust of large investors and SOL price volatility.
However, there has been a recovery in the value transferred on Solana’s network, bouncing back from a low of approximately $218 billion to surpass $1 trillion. This uptick in transferred value reflects a positive buying sentiment towards SOL, which could help stabilize its price and prevent further declines.
Bears Leading as SOL Price Faces Important Support Challenge
Bears currently dominate the price chart, with sellers striving to keep the price below a critical support level in the hours ahead. Despite their efforts, buyers are vigorously defending the immediate Fibonacci level. At present, SOL is priced at $102, reflecting a decline of over 6.2% compared to the previous day.
If the price fails to surpass the $103 support line, the next support level lies around $93. Breaching this level could lead to a drop towards a crucial support at $80. However, a strong recovery from $80 might propel the price towards the 20-day Exponential Moving Average (EMA), potentially leading to consolidation between $108 and $80.
To maintain their dominance, bulls must ensure the price stays above $100, laying the groundwork for targeting the subsequent significant resistance level at EMA20 and then $116.
Notably, the long/short ratio for Solana has decreased to 0.7562, with 57% of total positions anticipating a drop in its price.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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