$129 or $155? Where will Solana [SOL] head next?
Solana, a popular cryptocurrency, has recently experienced a notable decline in its price. Despite efforts to HODL (hold on for dear life), SOL fell by 6.16% within 24 hours, currently resting at $140. This downward trend has raised concerns among both long-term investors and traders.
One key metric to consider when analyzing the potential direction of SOL is its on-chain volume. On-chain volume refers to the amount of SOL traded over a specific period. Santiment’s data showed an increase in volume to $1.44 billion, indicating a rise from previous figures. Typically, rising volume alongside a decreasing price might be regarded as good news for bears, suggesting continued downward movement.
As a result, a plausible target for SOL’s price might be a decrease to $129. However, the situation might change if there is a reversal to the upside and the volume reaches new peaks. In this scenario, SOL’s price might potentially strive to reach $155.
Another important consideration for SOL’s future trends is the weighted sentiment. At present, the sentiment surrounding SOL is negative, implying the presence of pessimistic remarks. Nevertheless, sentiment analysis reveals that sentiment has been improving lately. If this trend persists and sentiment continues to rise, there might be an increase in the demand for SOL. This surge might invalidate the bearish prediction of a $129 price point and instead drive SOL to $155 or even higher.
Additionally, the total open interest (OI) for SOL has started to increase, indicating a growing interest among buyers. Currently, the OI stands at $1.46 billion, suggesting that buyers are becoming more aggressive compared to sellers. This presents a potential opportunity for a SOL breakout. However, the interest may not be extensive enough to push SOL beyond the overhead resistance, limiting its surge to $155 in the short term.
Considering these factors and trends, the future of Solana is uncertain. It is vital for investors and traders to closely monitor SOL’s on-chain volume, sentiment, and open interest to gain insights into its potential direction. As the cryptocurrency market continues to evolve and adapt, it is
