Solana price seems to stabilize in view of the latest market movements, as experts pay close attention to whether the cryptocurrency will manage to maintain its support level and make a new uptrend.
At the time of writing, SOL is trading at $68.93, down 0.57% over the last 24 hours. Meanwhile, daily trading volume stood at $3.48 billion, while Solana’s market capitalization reached approximately $39.94 billion, according to CoinMarketCap.
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Solana Price Faces Critical Support Test
Crypto analyst BitGure pointed out that the Solana price has been testing an important support level following a recovery from its latest reversal level. The important level will decide the next big move for the cryptocurrency.
Provided that the buyers manage to hold the existing support level, the price of Solana may be expected to bounce back to the resistance levels of $75 – $82. An approach towards these levels will signify a recovery from the recently experienced decline.
Market Activity Cools as Volume and Open Interest Decline
Latest derivatives statistics indicate that there is reduced participation in the market. The trading volume has decreased by 24.63% to $6.78 billion.
Meanwhile, open interest dropped 0.67% to $4.83 billion. This indicates that there may have been unwinding of some leveraged positions, and there are numerous investors who seem to be on hold to see which way the market moves.
According to the data of the derivatives market, the OI weighted funding rate is currently -0.0001%, which is still close to neutral. A marginally negative funding rate indicates a relatively balanced state of affairs in the bull-bear tug of war, with no side gaining an upper hand. This means that the subsequent price move of the Solana price will hinge on the ability of buyers to hold on to their ground and gain momentum to break out into higher zones.
At the moment, the Solana price is still at an important technical level. The market players will have to wait and see if SOL manages to hold this support level and possibly move up to the $75-$82 region.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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