- Solana’s trading volume is down 20% in the past 24 hours.
- Solana faces increased sell pressure despite recent bullish momentum.
Solana (SOL) is currently trading at $173, reflecting a slight decline of 0.49% over the past 24 hours, with trading volume down 20%. Despite this recent downturn, SOL has gained approximately 13% in the last week, previously hitting a three-month high of $179. The bullish momentum seen over the past two weeks has sparked expectations of increased sell pressure, leading to a notable surge in short positions.
Meanwhile, in the last five days, SOL has experienced intensified selling pressure, as traders look to secure profits following its impressive rally. Data from Coinglass indicates that over $7 million worth of short positions were liquidated within the last 24 hours, with shorts accounting for 64.54% of market activity during this period. Furthermore, the long/short ratio for SOL dropped from 1.05 on September 20 to 0.95, before recently rising to 1.1, highlighting a significant increase in short positions.
The altcoin recently surpassed a resistance range between $161 and $163, spurred by heightened short liquidations. At the time of writing, SOL is priced at $174 but has entered overbought territory according to the Relative Strength Index (RSI), indicating potential for intensified sell pressure. Nevertheless, the cryptocurrency is eyeing a new resistance zone at $185, following a significant increase in open interest, which surged to $3.26 billion, the highest since April.
SOL Price Chart, Source: Sanbase
Network Growth And Resistance Levels
Amid this volatility, the Solana-based decentralized exchange Raydium (RAY) has drawn attention for surpassing Ethereum in fee collection, reflecting increasing activity within the Solana ecosystem. RAY has seen a remarkable 36% price surge over the past week, positioning it at a seven-month high of $2.94.
As SOL grapples with sell pressure, traders remain cautious. A potential drop below the critical support level of $161 could trigger significant liquidations, leading to further declines. Conversely, a breakthrough at $175 might pave the way for a rally towards $186, offering a glimmer of hope for bullish sentiment in the near term.
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