- Solana tested a support level for a period of several months at the time this article was published, following persistent pressure to sell and an absence of interest from buyers.
- On-chain data, despite the weakening of prices, remained positive. Development activity for Solana increased 33% from month to month.
Solana [SOL] The price of the token fell by almost 4% over the past 24 hours. This was due to the general bearish market trend. As of the writing, the token traded at $139.
SOL’s market cap has dropped the most among the top 10 cryptos. The trading volume is also down 12%. CoinMarketCap The data suggests a decrease in market interest, and lack of confidence among traders.
Is a bullish trend likely to continue as Solana tests the multi-month level of support?
Buyer interest has declined
Solana’s indicators suggest a lackluster buyer response. Chaikin Money Flow, or CMF on the chart of four hours has oscillated in the negative area since the beginning of this week.
This pattern indicated a persistent sales pressure, and that the market was not able to absorb all the tokens.
Relative Strength Index shows a weak buying trend around SOL. At the time of press, the index stood at 33. This indicates a downward trend.
The RSI is forming lower bottoms, which shows the bears’ dominance. The RSI is now trying to cross above the signal level in a bullish direction.
Two consecutive green candles have also been seen after the price has bounced back after it tested a multi-month level of support, $138. Solana’s support has been at this level since August.
TradingView
Bulls can target immediate resistance, the Fibonacci level of 0.382 ($146), if Solana continues to bounce from the support.
SOL must break through $152 to confirm a trend upwards. SOL may consolidate and then trade in a range if the trend fails.
Solana shows strength
Solana’s metrics on the chain painted a positive picture, even though price movement remains negative.
A recent X post (formerly Twitter), by SantimentThe Solana Network has seen the largest month-over-month increase in the total amount of development activities.
This activity increased by 33%. It is an indication of network growth and improvement.
Source: X
Data from DeFiLlama Also, the Total Value Locked by Solana increased over $1 Billion in the past month despite market headwinds.
Click Here to Read Solana’s [SOL] Price Prediction 2024–2025
However, positive metrics on the network were not enough to convert long traders.
The Long/Short ratio below 1 is also a problem. Coinglass The price movement of Solana has been dominated by short sellers for the majority of this week.
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Source: ambcrypto.com
