The Impact of Recent Market Volatility on Solana
The cryptocurrency market has been highly volatile in the past 48 hours, affecting both Bitcoin and altcoins, with notable implications for Solana.
This volatility has resulted in significant liquidations within the Solana ecosystem, sparking intense trading activity and a fierce battle between buyers and sellers.
- Total liquidations on Solana surpassed $21 million, with long positions accounting for $15 million of this amount.
- Solana’s trading volume spiked by 90% to $3.5 billion, indicating heightened market activity.
- However, on-chain metrics for Solana have shown bearish signals, particularly with a noticeable decline in active addresses.
- The number of active addresses dropped from a weekly high of 1.59 million to a recent low of 1.44 million, reflecting market turbulence.
Potential Influences on SOL Price
Looking forward, potential catalysts for Solana’s price include the approval of a spot Ethereum ETF, which could inject significant capital into the market:
Analysts anticipate that similar to Bitcoin earlier this year, approval of an Ethereum ETF could attract billions of dollars into the market. This could set a precedent for Solana ETFs, with VanEck already submitting an application and other major firms expected to follow suit.
Forecasting SOL Price Movements
Currently, Solana is showing signs of a bearish descending triangle pattern, which could be confirmed if the price closes below $118:
- The current SOL price stands at $137, showing a slight decline of 0.7% in the past 24 hours.
- Bulls are defending against a drop below key Fibonacci levels, with potential support around the $118 mark.
- Positive indicators include a potential positive divergence in the RSI, suggesting reduced selling pressure.
If bulls manage to push SOL above the 20-day EMA, a rally towards the 50-day SMA ($153) and potentially higher levels could ensue. Conversely, a break below $118 could strengthen the bearish outlook, possibly leading to a decline towards $80.
The recent recovery from $121 indicates strong support around the $118 level, with potential for a bullish breakout if SOL climbs above $150.
