- SOL maintained its trend above its 50 MA.
- Derived statistics gave positive signals.
The past 14 days, Solana’s [SOL] price has undergone significant fluctuations. One week, the price seemed on the verge of hitting its all-time high again.
The following week, the country suffered declines that threatened to push it below a critical threshold.
Solana jumps between winning and losing
According to AMBCrypto’s analysis of the daily timeframe chart, Solana has shown contrasting trends in recent weeks.
The price range tool visualized these fluctuations. Between May 14 and 20, Solana’s price rose by about 23%, from about $141.9 to over $186.
This rise suggested that Solana could regain the $200 price zone it reached in March. However, after reaching the $186 mark, the price reversed.
Source: TradingView
The price range tool indicated that the price has fallen by more than 21% over the last seven days, from May 21 to the time of writing.
After peaking to the $180 zone with a 9% increase, it saw a decline of more than 4% during the next trading session on May 21.
Subsequent declines followed, and the few upward trends were insufficient to offset these losses. At the time of writing, Solana was trading around $166, showing an increase of 1.70%.
Notably, it traded above its short-term moving average (yellow line), which acted as support at around $154. However, other key metrics will determine whether this current support level can hold.
Solana volume soars above $2 billion
An analysis of Solana’s trading volume revealed a significant recent decline. According to Santiment, volume dropped from more than $5 billion to about $1.8 billion on May 25.
However, starting on May 26, volume started to increase slightly, to approximately $2.5 billion.
At the time of writing, the volume was over $2.7 billion. This indicated that Solana was still experiencing decent trading volume despite the price drop.
Source: Santiment
SOL interest and financing interest give positive signals
An analysis of the financing rate on Mint glass showed a recent increase, with the rate at approximately 0.019% at the time of writing. This indicates that buyers are more active and betting on an increase in the price of Solana.
Additionally, analysis of Open Interest revealed a slight increase, with SOL’s Open Interest at approximately $2.4 billion at the time of writing. This influx of cash is a bullish signal.
Given trading volume and derivative metrics, Solana’s current support level could remain strong for a while.
Read Solana’s [SOL] Price forecast 2024-25
The rising volume indicated continued interest, and the rise in open interest suggested more money is flowing into SOL.
This could push the price higher, and even if it doesn’t, it is unlikely to fall below the current support level.