Solana (SOL) Price Analysis: Will the Recent Bearish Trend Continue?

Solana [SOL] witnessed much traction in the recent past as several investors withdrew SOL to buy other Solana-ecosystem tokens. While activity around SOL remained high

Solana [SOL] witnessed several interesting developments in the recent past. Several investors withdrew SOL to purchase other Solana-ecosystem tokens.

While activity around SOL remained high, its price action turned bearish in the last 24 hours.

Let’s have a closer look at what’s going on.

Solana’s trading volume rises

Recent tweets by Lookonchain highlighted that an insider purchased 190.2 million HULK, which was nearly 19% of the latter’s total supply, using just $1.2k worth of SOL.

Following this, the insider sold the recently acquired HULK for 5,760.7 SOL, which was valued at $979k.

Another whale withdrew 8,943 SOL, valued at $1.54 million, from Binance to purchase 8.6 million MOTHER at a price of $0.1789.

Thanks to all these transactions, SOL’s trading volume remained high throughout the last week.

In the last 24 hours alone, SOL’s trading volume remained at more than $2 billion.

During this period, SOL managed to push its price up by nearly 3% in the last seven days. But the trend changed in the last 24 hours as the token’s value dropped by over 1%.

At the time of writing, Solana was trading at $171.88 with a market capitalization of over $79 billion, as per CoinMarketCap.

Will SOL remain bearish?

To assess whether SOL would continue to remain bearish, AMBCrypto then analyzed its on-chain data. We found that SOL’s weighted sentiment remained in the negative zone. This indicated that bearish sentiment around the token was dominant in the market.

Its funding rate increased substantially over the last few days. Meanwhile, its social volume was high, reflecting its popularity in the crypto space.

Source: Santiment

A bullish metric was highlighted when AMBCrypto checked Coinglass’ data. We found that SOL’s long/short ratio increased sharply in the last four hours.

To explain, a high long/short ratio suggests that there are more buyers than sellers in the market, which can be inferred as a bullish signal for the token.

Source: Coinglass

Our analysis of Solana’s daily chart also revealed a few bullish indicators. For instance, the Money Flow Index (MFI) registered a sharp uptick over the last few days.

Read Solana (SOL) Price Prediction 2024-25

Moreover, its Relative Strength Index (RSI) also followed a similar trend and went up. These suggested that the chances of SOL’s price rising were high.

However, the Chaikin Money Flow (CMF) remained bearish as it continued to trade under the neutral mark of 0.

Source: TradingView