- Solana’s price struggles after the trendline breakout, potentially heading to $80 support.
- TVL drops from $12B to $7.13B, signaling waning confidence in Solana’s ecosystem.
- Open interest declines, reflecting reduced speculative activity and bearish sentiment.
Solana (SOL) has been affected badly by the volatile market, impacting its price in recent months. At press time, the trading value of $135.16 SOL demonstrates only -0.06% daily price change while keeping investors intrigued about its forthcoming developments. Solana’s price analysis examines multiple variables, such as market trends, technical measurements, futures trading measures, and crypto project value metrics.
Price Action Analysis and Technical Indicators
Since its December peak, the price of Solana has shown downward movement, exceeding $250 until it settled around $135.16. The weekly chart shows a vital trendline breakout, which signals that additional price drops will occur. Solana failed to sustain the trendline retest following its decrease below this barrier, demonstrating that the market lost its ability to turn the bearish trend around. Solana shows signs of falling after the rejection of the trendline which indicates a potential price decline of $80.
Source: TradingView
The Relative Strength Index (RSI) indicates that Solana is oversold, given its current value of 28.24. When market participants start buying Solana, a price change toward bullish momentum may happen. The Moving Average Convergence Divergence (MACD) indicator shows ongoing bearish patterns because the MACD line continues to rest below the signal line. Based on the combined signals, Solana’s imminent price rise will likely be brief until an influential trigger emerges.
Open Interest Analysis and TVL and On-Chain Activity Indicators
The peak open interest value of over $6.65 billion in Solana futures contracts was registered when the price reached its current value before decreasing to $4.18 billion. Based on the decline of open interest, markets show reduced speculative behavior indicating traders are withdrawing funds or repositioning at different levels. As Solana experienced declining market prices, this bearish sentiment became evident through the reduction of open interest in its future contracts.
Source: TradingView
Solana’s Total Value Locked (TVL) experienced a significant reduction after reaching $12 billion in January now at $7.13 billion. The overall TVL decrease in Raydium combined with declining decentralized app (dApp) adoption, including Jupiter DEX and Jito liquid staking, represents the main reason for this drop. A combination of falling Solana ecosystem activity and diminishing on-chain transactions demonstrates investors losing confidence, which weakens its market value.
Market Outlook for Solana
Solana’s bearish market stance emerges through its price patterns, technical signal indicators, and declining open interest and TVL measures. After breaking through an important support level, Solana remains in a precarious situation and cannot reclaim it. However, the current price position in the “premium zone” could create market overvaluation leading to a potential price correction. All bearish movements toward $80 seem probable since the cryptocurrency lacks buying sentiment and shows negative technical signals.
