Solana Facing Volatility and Liquidations
Over the past 48 hours, the market has witnessed significant volatility, impacting both Bitcoin and the altcoin market. This volatility has particularly affected Solana, leading to notable liquidations. A fierce battle between buyers and sellers is currently unfolding. Furthermore, various on-chain metrics for Solana have taken bearish positions, giving the bears a strong advantage.
Solana’s Active Addresses Decline Steeply
SOL’s price has been fluctuating near the $140 level, with Solana’s total liquidations exceeding $21 million. Long positions accounted for $15 million of this total. Simultaneously, Solana’s trading volume surged by 90%, reaching $3.5 billion within a single day, signaling a significant increase in trading activity.
- In the face of volatility, on-chain indicators are showing bearish trends.
- The number of active addresses on the Solana network has decreased, indicating a bearish trend.
- The value moved on-chain has also declined by billions in recent weeks.
Potential Impact of an Approved Spot Ethereum ETF on Solana
A spot Ethereum ETF approval is anticipated in the coming week, a move that could see billions of dollars flowing into these funds, reminiscent of Bitcoin earlier this year. Following this, the SEC may turn its attention to spot Solana ETFs. VanEck has already submitted an application for a Solana ETF, with other firms such as Blackrock, Franklin Templeton, and Ark Invest expected to follow suit.
Future Price Outlook for SOL
Solana is currently forming a bearish descending triangle pattern, with $118 as a critical support level. Bulls are actively defending this level to prevent further decline. As of now, the SOL price is at $137, registering a 0.7% decline in the last 24 hours.
- The RSI indicates a potential positive divergence, suggesting a decrease in selling pressure.
- A break above the 20-day EMA could lead the price towards the 50-day SMA and the downtrend line.
- Conversely, a fall below $118 could solidify the bearish pattern, with a potential drop to $80.
Remaining Bullish Sentiment for Solana
The recent recovery from $121 showcases strong support around the $118 level. If the price surpasses $150, there may be a surge in buying activity, indicating a bullish trend for Solana in the near future.
Hot Take: Solana’s Path Amidst Market Volatility
As Solana navigates through the market turbulence induced by recent fluctuations, the cryptocurrency’s resilience is being tested. While facing liquidations and bearish on-chain metrics, the future of Solana hinges on potential developments such as the approval of a spot Ethereum ETF. Traders and investors closely monitor Solana’s price movements and the ongoing battle between bulls and bears for insights into the digital asset’s trajectory.
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