- Solana faced a critical test at a multi-month support level, with selling pressure and limited buyer interest.
- Despite price weakness, on-chain data remained positive, with Solana’s development activity surging by 33% month-on-month.
Solana [SOL] experienced a nearly 4% decline in the last 24 hours, influenced by the bearish sentiment in the broader cryptocurrency market. The token was priced at $139 at the time of writing.
SOL saw the largest drop among the top ten cryptocurrencies by market capitalization, with trading volumes down by 12% according to data from CoinMarketCap, indicating waning market interest and uncertainty among traders.
With Solana testing a crucial support level, the question arises: will there be a bullish reversal or a continuation of the bearish trend?
Diminished Buyer Interest
Solana’s technical indicators suggest a lack of buyer engagement, with the Chaikin Money Flow (CMF) remaining in negative territory and the Relative Strength Index (RSI) showing a bearish momentum.
The recent price bounce from the support level at $138 has led to speculation about a potential bullish reversal, with resistance levels at $146 and $152 being key targets for bulls.
Solana Shows Strength
Despite the bearish price action, Solana’s on-chain metrics present a positive outlook, with a significant increase in total development activity and Total Value Locked (TVL) over the past month.
The Long/Short Ratio on Coinglass indicates a dominance of short traders in Solana’s price action, despite the favorable network metrics.
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