Why is Solana (SOL) price down today?

Biraajmaan Tamuly8 hours agoWhy is Solana (SOL) price down today?Solana registered a 10% decline over the weekend, failing to close above a psychological level at $150 on the weekly candle.74161 Total views942 Total sharesListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onSolana (SOL) traders saw $15 million in liquidations over the past day. The altcoin continues consolidating between $162 and $125, where buyers and sellers have tussled for dominance since April.  Solana spot and futures activity exhibit caution

One reason Solana hasn"t maintained strong upward momentum is the lack of market activity since its crash during the first week of August. While SOL recovered swiftly above $125, futures and perpetual open interest (OI) have witnessed a massive flush this month. Since Aug. 1, open interest has declined from $2.47 billion to $1.7 billion, or 32%. Solana open interest and spot volume chart. Source: Coinalyze. 

Although the drop in OI can be considered bullish since it indicates the futures market is deleveraging, SOL traders have remained cautious even after its 25% recovery swing to $165. During this rally, the OI only increased by $200 million. 

Solana"s aggregated spot volumes have also indicated a lack of urgency. On Aug. 5, SOL spot volumes globally witnessed $74 billion in trading volumes, its third largest activity in 2024. Right now, the spot volume is down to $7.5 billion. 

Its recent deficit in spot volumes indicated that minimal trading activity was responsible for its 25% recovery from $110. Hence, low liquidity was inferred as another reason why SOL dropped 10% over the past two days. SOL price targeting $194, and may be higher: Analyst

While Solana’s price action remains sideways, one analyst believed that SOL could set up for a big week above $190. Matthew Dixon, CEO at Evai.io, claimed that the altcoin had witnessed a “nice clear five waves up” after a period of weekend correction. Solana 1-hour chart by @mdtrade. Source: X.com

Drawing his analysis based on Elliot wave theory, he said, This week should give us a further 5 waves to the upside, targeting a minimum SOL price of 194 and possibly MUCH higher.

From a technical perspective, it is essential for SOL to break above $150 on the daily candle. 

Since its steep 35% correction in April 2024, SOL/USD has consolidated between $162 and $127 for 82 out of 121 days. That is 66% of the time since Q2, and the $150 level has played a key role. Solana 1-day chart. Source: Trading View

Whenever SOL breached $150 with urgency, the altcoin was able to rally and break above the range high of $162 as well. It happened several times, as observed in the chart, but its recent rally above $150 failed to push it above $162. While this is an unfavorable exception over the past 121 days, SOL is showing intent yet again to close above $150.

Solana is currently priced at $150 as volatility continues to grip the altcoin. Over the past 24 hours, SOL has witnessed over $4.2 billion in trading volume. 

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.# Cryptocurrencies# Altcoin# DApps# Markets# Cryptocurrency Exchange# Decentralized Exchange# Market Analysis# SolanaAdd reaction