- Solana price goes nowhere for a third week in a row.
- As traded volume declines rapidly, SOL lacks any interest from both bears and bulls.
- The issue is that any move could enlarge exponentially with less volume.
Solana (SOL) price action has significant issues, even without considering the current financial market dynamics and the past week's events. SOL is drying up as a water well in the desert and is waiting to see interest pick up soon. As the last kid left standing when choosing your players for dodgeball, SOL is left behind as traders turn their back to the altcoin.
SOL is the last kid picked for the team
Solana price action is not in good health. The weekly traded volume is rapidly declining and flirting with the lowest levels we have seen throughout 2022. This decline in volume means that any trader in SOL is at risk of pulling its cash out of there at any given moment. The balance between buyers and sellers is very fragile and could tip the scale quickly with nosedive moves and falling knives.
SOL is thus in desperate need of some risk-on appetite in the markets. But after the messages from the central banks, it does not look that will happen anytime soon. As volume further declines, expect to see price action set to collapse in the coming weeks and dip towards $5.10, bearing 60% losses and a big loss of market cap for SOL.
SOL/USD weekly chart
In case more buyers come in, in the wake of 2023 and build up new positions for portfolios that are set to start with a clean slate, SOL would see uptick moves being enlarged due to the lack of volume. So price action could quickly increase towards $19.04 against the pivotal level and the 55-day Simple Moving Average (SMA). Once broken above, price action could be printing a 140% price increase against the 200-day SMA near $30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH, and XRP could face volatility as Trump’s “Liberation Day” nears
Bitcoin (BTC) price hovers around $87,000 on Wednesday after recovering 4% in the last three days. Ethereum and Ripple find support around their key level, suggesting a recovery on the cards.
BlackRock’s BUIDL fund launch on Solana platform while Fidelity files for spot Solana ETF
Solana’s price hovered around $142 at the time of writing on Wednesday. Asset management companies show a rising interest in the Solana platform as the BlackRock USD Institutional Digital Liquidity Fund fund launches on the Solana platform while Fidelity files for a spot Solana ETF with Cboe Global Markets
XRP fails to rally as Ripple agrees to drop cross-appeal against SEC
Ripple confirmed on Tuesday that it will no longer pursue its cross-appeal against the United States (US) Securities and Exchange Commission (SEC).
GameStop unveils plan to add Bitcoin as reserve asset
Video game retailer GameStop announced in its Q4 financial report on Tuesday that it would acquire Bitcoin and US Dollar-backed stablecoins as treasury reserve assets.
Bitcoin: BTC stabilizes around $84,000 despite US SEC regularity clarity and Fed rate stability
Bitcoin price stabilizes around $84,000 at the time of writing on Friday after recovering nearly 2% so far this week. The recent announcement by the US SEC that Proof-of-Work mining rewards are not securities could boost BTC investors' confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.