Solana (SOL) Price Analysis: Can SOL Rally Persist After Dipping Below $180?

  • Solana’s (SOL) recent price decline has not deterred long traders in its futures market.
  • Despite the price drop, SOL accumulation continues to rise.
  • Market sentiment has shifted from bullish to bearish, but long traders remain optimistic.

Solana’s (SOL) futures market remains dominated by long traders despite recent price declines.

SOL’s Brief Rally and Subsequent Decline

Solana’s (SOL) rally above its short-term resistance level of $185 on May 20th was short-lived as selling pressure pushed the coin’s price below $180. After reaching a one-month high of $187.83 on May 21st, SOL initiated a downtrend, falling by 6%. As of this writing, SOL is trading at $177 according to CoinMarketCap data.

Market Sentiment Turns Bearish

The decline in SOL’s price has led to a decrease in its daily trading volume, which currently stands at $3.74 billion, a 20% drop from the $5 billion high recorded on May 21st. This selling pressure has shifted SOL’s weighted sentiment from positive to negative, with Santiment data showing a weighted sentiment of -0.13. A negative weighted sentiment indicates more negative social media buzz than positive discussions.

Due to the price drop, SOL’s futures market has seen more long positions liquidated than short ones over the past two days. According to Coinglass data, between May 21st and 22nd, $13 million worth of long positions were liquidated, compared to $5 million worth of short positions. Additionally, SOL’s futures open interest has decreased by 10%, indicating that traders are exiting their positions without opening new ones.

The Bulls Remain Steadfast

Despite SOL’s recent price action, its funding rate remains positive at 0.0159%. A positive futures funding rate suggests strong demand for long positions, indicating that traders are still buying SOL and expecting a rally. The surge in SOL accumulation is also reflected in its rising Relative Strength Index (RSI), which currently stands at 61.94, suggesting that spot market participants prefer accumulating more coins than selling.

Conclusion

In summary, while Solana’s (SOL) price has experienced a decline, the futures market remains dominated by long traders, and accumulation continues to rise. Market sentiment has shifted to bearish, but the positive funding rate and rising RSI indicate that traders are still optimistic about SOL’s future performance. Investors should keep an eye on these metrics to gauge the potential for a future rally.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Price Drop to $64K Ignites Market Uncertainty, While CORE and ORDI Soar

Today's crypto market witnessed a significant downturn,...

Bitcoin Price Struggles Below $66,500 Resistance, Faces Potential Decline

Bitcoin price is experiencing downward pressure after...

Ethereum Price Analysis: ETH Struggles Below $3,650, Signals Bearish Momentum

Ethereum's price movement is showing signs of...

BitFlyer Holdings to Acquire FTX Japan Amid Ongoing Bankruptcy Proceedings

BitFlyer Holdings is preparing to acquire the...

Montenegrin PM’s Coinbase Investment Exposed Amid Terraform Labs Collapse

In a recent turn of events, Montenegro’s...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Price Analysis: ETH Struggles Below $3,650, Signals Bearish Momentum

Ethereum's price movement is showing signs of...

BNB Price Analysis: Bearish Momentum Threatens Drop Below $600

BNB’s price trended within a...

Bitcoin Price Analysis: Bears Dominate as BTC Slides, Hedge Funds Reduce Exposure

Bitcoin prices are experiencing a decline, drifting...

Floki ($FLOKI) Poised for Strong Gains in 2024: An In-Depth Analysis

Cryptocurrency investors are continuously searching for lucrative...

Ethereum Price Analysis: ETH Eyes Break Above $3,650 for Potential Surge to $4,000

Ethereum's price saw notable oscillations...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin Price Drop to $64K Ignites Market Uncertainty, While CORE and ORDI Soar

Today's crypto market witnessed a significant downturn, with Bitcoin (BTC) dropping to $64K. Ethereum and other altcoins like Solana and XRP...

Bitcoin Price Struggles Below $66,500 Resistance, Faces Potential Decline

Bitcoin price is experiencing downward pressure after failing to breach the $66,500 resistance mark. Currently trading below the $65,500 level, BTC...

Ethereum Price Analysis: ETH Struggles Below $3,650, Signals Bearish Momentum

Ethereum's price movement is showing signs of vulnerability around critical resistance levels. Current trading patterns indicate potential bearish momentum unless a...