Solana (SOL) has experienced a significant drop to $90, reflecting a 4.5% decline in the past 24 hours and a $6 billion gap in market cap compared to BNB.
Key Takeaways
- Solana experiences a notable drop to $90, marking a 4.5% decline in the past 24 hours and a $6 billion market cap gap with BNB.
- Despite the decline, daily trading volume surges to $2.9 billion, indicating increased market activity.
- Santiment’s RSI data at 35 suggests a potential rally, as selling pressure decreases compared to the previous week’s levels at $110.
- To sustain a rally, SOL’s RSI needs to stay below 50; total open interest decreases to $880 million, and a 90% drop in funding rates favors long-position holders.
Solana Faces Decline Amidst Potential for a Rally
Solana (SOL) has experienced a notable downturn in its price, falling to $90, marking a 4.5% decrease within the past 24 hours. This decline positions SOL with a market cap of $39.2 billion, creating a notable $6 billion gap when compared to the fourth-largest cryptocurrency, BNB.
However, the decline is accompanied by a surge in Solana’s daily trading volume, reaching $2.9 billion, suggesting heightened activity in the market despite the price drop.
Santiment’s Indicator Points to Rally Potential
Santiment’s data reveals an intriguing aspect of Solana’s current state. The Relative Strength Index (RSI), a key indicator of an asset’s momentum, is currently at 35. This marks a continuous decline from SOL’s RSI of 73 on January 2, indicating a decrease in selling pressure.
Solana falls to $90 while a key indicator shows the possibility of a strong bull runhttps://t.co/kamztrraCv
— crypto.news (@itscrypto_news) January 8, 2024
The RSI data suggests the potential for a notable rally, with reduced selling pressure compared to the previous week when Solana was trading around $110. To sustain such a rally, it’s crucial for SOL’s RSI to remain below the 50 mark.
Changes in Open Interest and Funding Rates
Further insights from Santiment show a decline in total open interest (OI) for Solana, dropping from $1.3 billion on January 1 to approximately $880 million. This decline hints at strong liquidations or the closure of trading positions as Solana dipped below the $100 mark.
To Conclude
Solana’s recent drop to $90, though indicative of a market downturn, is accompanied by increased trading volume and intriguing indicators. Santiment’s RSI data suggests the potential for a rally, emphasizing the importance of SOL’s RSI staying below 50.
Changes in open interest and funding rates further depict a dynamic market landscape, with current advantages for long-position holders. Investors are closely monitoring these indicators for potential shifts in Solana’s market trajectory.
