A popular crypto analyst suggested selling Solana if it falls under $180.
- Solana’s trading volume dipped sharply in the last seven days.
- A key technical indicator hinted at a price drop soon.
Solana [SOL] has witnessed a slight correction in the last 24 hours, like several other cryptos. However, a recent analysis revealed that it’s crucial for the token to hover within a particular range in order to hold its price.
Will SOL be able to do so, or the ending of 2024 might witness SOL losing market capitalization?
Solana’s crucial level!
After a nearly 5% weekly price hike, the token’s value dropped in the last 24 hours. At the time of writing, SOL was trading at $193 with a market capitalization of over $92 billion.
Ali Martinez, a popular crypto analyst, posted a tweet revealing an interesting development. Martinez mentioned that it is crucial for the token to sustain its price with the $190-$180 range.
In case of a plummet under that level, the token might witness a further price down, which can push many investors in loss.
AMBCrypto then checked Solana’s on-chain data to find out whether SOL falling under this range is possible in the near-term.
What’s going on with SOL?
As per our analysis of Santiment’s data, SOL’s price might continue to drop as its trading volume declined over the last week. A drop in the metric hints at a continued bearish trend.
Nonetheless, Solana’s Social Volume remained high, which reflected the token’s popularity in the crypto market.
Source: Santiment
Despite the declining volume, SOL’s Long/Short Ratio registered an uptick. This meant that there were more long positions in the market than short ones, which can be considered a bullish update.
AMBCrypto’s analysis of Hyblock Capital’s data revealed yet another bullish metric, which suggested that Solana might now go under the critical trading range.
The token’s buy volume touched 86 on the 29th of December. A value closer to 100 indicates that buying pressure is high, which has a positive impact on an asset’s price.
Source: Hyblock Capital
The fact that buying pressure on Solana was rising was further proven by a technical indicator. The token’s Relative Strength Index (RSI) registered a slight uptick, suggesting a hike in buying activity.
However, the Chaikin Money Flow (CMF) dipped in the recent past — a signal of a decline in buying activity.
Whether this will cause Solana’s price to drop under $180 in the coming days, is a question only time to answer.
Source: TradingView