Solana, the sixth-largest cryptocurrency, has experienced a 6% decline in the last 24 hours, reaching $184 at press time. This downturn coincides with a decrease in on-chain activity within the Solana ecosystem and a surge in bearish sentiment. Data reveals a decrease in the number of wallets holding over 100 SOL and a significant outflow of stablecoins from the Solana blockchain. Furthermore, Solana's price has weakened against Ethereum, with the SOL/ETH pair dropping over 28% since its peak on February 3rd. The current bearish trend is fueled by a high number of leveraged traders shorting SOL, leading to oversold conditions. However, some analysts believe this overreaction may lead to a short squeeze and a potential rebound for Solana.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions.
We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Solana, the sixth largest cryptocurrency, is down 6% in the last 24 hours to $184 at press time against the broader crypto market’s losses of 1.22%. Solana is down nearly 10% weekly. Solana’s drop in the past week has coincided with a decrease in on-chain activity within the Solana ecosystem. According to a crypto analyst, the number of wallets that hold more than 100 Solana (SOL) has decreased by 2.24% in the last two weeks, from 154,653 to 151,184. An outflow of $772 million in USDT and USDC stablecoins from the Solana blockchain was witnessed in a week, according to on-chain analytics platform LookOnChain. During the same period, Ethereum's USDT and USDC supply increased by $1.1 billion. Solana's price dip also coincides with a period of increasing weakness against Ethereum. The widely monitored SOL/ETH pair has declined more than 28% since its peak on Feb. 3 and 5.2% in the last 24 hours. Solana is down for the third day in a row after peaking at $205 on Feb. 14. The loss took it below the crucial SMA 200 mark at $183, but it has since returned above it at press time. According to CoinGlass data, Solana's open interest (OI) is rising, but OI-weighted funding rates remain negative, which explains why SOL's price is declining. Negative funding indicates that shorts are paying longs to keep their positions open. This bearishness has resulted in oversold conditions for Solana. According to crypto analyst Ali, funding rates suggest that a few crypto assets, notably SOL, are among the most oversold currently. Oversold conditions based on funding rates imply that a significant number of leveraged traders are shorting the asset. In this scenario, the cost of maintaining these short positions increases, potentially triggering a reversal as traders begin to cover their shorts. For SOL, this could imply that the recent 6% loss was an overreaction, with a potential comeback or short squeeze on the horizon if the market adjusts
SOLANA CRYPTOCURRENCY PRICE DROP ON-CHAIN ACTIVITY SHORT SQUEEZE ETHEREUM
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Solana (SOL) Price Prediction for January 24Can traders expect Solana (SOL) to test the $300 mark soon?
Read more »
Solana (SOL) Price Prediction for January 28How long may accumulation period of Solana (SOL) last?
Read more »
Solana (SOL) Price Prediction for February 5Can price of Solana (SOL) rise by end of week?
Read more »
Solana Price Forecast: Are US traders dumping Bitcoin and XRP for SOL?Solana (SOL) price stabilized near the $250 support level on Monday, having declined 10% from its all-time high over the last 24 hours.
Read more »
Solana (SOL) Price Prediction for February 12When can traders expect bounce off of Solana (SOL)?
Read more »
Solana Price Analysis: SOL plunges as ETF speculators bet billions on XRP and DOGESolana (SOL) price tumbles as low as $180 on Monday, down over 9% in three consecutive days of losses.
Read more »