Solana has struggled since FTX’s fall, which caused SOL price to fall more than 60% in just 10 days. The Solana bulls have tried to give the price action a one-time respite but so far have been unsuccessful as the asset is trading 94.72% below its all-time high.
At the time of writing, SOL crypto price is trading at $13.71, up 1.47% from daily data. However, near-term gains don’t seem to appeal to buyers as trading volume fell 23.57% to $168.57 million on Dec. 8.
During the spot price action of Solana depends on the overall crypto market, looking at its on-chain data can give us a better insight into the near-term evolution of the coin.
Solana’s market cap dominance saw a significant drop on Oct. 31, bringing the asset back to August 2021 levels ahead of the big rally wave.
Interestingly, the price has fallen below the August 2021 level, but the market dominance has remained the same.
A review of Solana’s open interest and funding rates will provide insight into the asset’s market direction and whether the price trend will change. Open interest for Solana increased more than 3% to $196.4 million.
Although the interest rate open has increased, the funding rate remains negative, meaning short traders are dominating the move and are willing to pay long traders. This is a sign of a downtrend.
The futures market data indicated a prolonged rally and a lack of euphoria for the SOL crypto as bears dominated the bulls.
Despite an overall bearish price structure, Solana’s non-fungible tokens (NFTs) performed well, and on December 6, the total number of NFT trades hit a three-week high. In parallel, the total trading volume of NFT also increased on the same day.
Nonetheless, the trading volume for the SOL crypto has still not increased, indicating a lack of interest from individuals. The overall weighted sentiment for SOL remains negative, meaning that demand for this coin is also relatively weak.
If the price of SOL manages to settle above $14.40 and then the psychological resistance of $15, it could play a major role in confirming the move’s resumption. On the contrary, if the bearish action continues, the asset could drop back towards the lower $10 levels.
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