- Solana’s OBV trend shifts from bullish to bearish, signaling lower buying volume across major exchanges.
- Analysts warn that sellers remain dominant while buyers show weak momentum in the current $SOL market.
- Traders wait for exhaustion of selling pressure before confirming the next bullish recovery attempt.
Solana’s on-balance volume (OBV) chart has flipped direction after maintaining a consistent uptrend for nearly six months. The latest data shared by IncomeSharks shows a clear structural change with the uptrend channel now replaced by a descending pattern. The analyst noted that there is “nothing bullish about an OBV like this,” warning that market sentiment may remain negative until sellers are exhausted.
The OBV metric, which tracks cumulative trading volume relative to price, reflects the broader selling pressure building around Solana. The indicator moved from a steep incline between July and September to a downward slope beginning in October, aligning with the coin’s declining market price. This transition highlights a shift from accumulation to distribution, often seen before broader corrections.
According to IncomeSharks, the market will need to see either a reduction in selling pressure or renewed bidding activity to confirm a bottom. Until then, traders are likely to remain cautious as Solana’s technical indicators favor short-term bearishness.
From Uptrend to Downtrend: What the OBV Reversal Indicates
The OBV chart shows two distinct phases. The first, marked in blue, represents a clear uptrend starting in mid-July when Solana began attracting renewed interest from both retail and institutional traders. The trendline captured consistent higher highs in both volume and price movement, reflecting a steady rise in bullish participation.
However, this momentum began to fade in early October. As volume dropped and price volatility increased, the OBV broke below its upward channel. The newly drawn red downtrend channel signals reduced confidence, with sellers steadily overpowering buyers.
Analysts note that this pattern aligns with broader market hesitation, where altcoins often lag after extended rallies. The break between the blue and red channels represents a structural shift that traders often interpret as a warning sign for upcoming corrections.
Market Sentiment and Analyst Reactions
Following the post, IncomeSharks commented that they will wait for evidence that “sellers are exhausted or buyers are actually ready to bid.” This statement reflects the prevailing uncertainty within Solana’s market, where volume remains weak despite recent price consolidations.
Other traders on social platforms echoed similar sentiments. User CodeN noted that Solana’s OBV “is a polite shrug,” suggesting that the real move will occur only once trading volume returns. Another user added that current momentum “feels fake right now,” indicating skepticism over any near-term bullish reversal.
The on-balance volume’s continuous decline underscores waning participation across exchanges. Without a visible uptick in trading activity, any recovery attempts may face resistance at upper channel boundaries.
Can Solana Regain Momentum amid Declining Volume?
The central question facing traders is whether Solana can regain the momentum it once held during its strong mid-year rally. OBV trends often serve as early warnings for broader price behavior, and the latest breakdown suggests that buyers remain hesitant.
The indicator’s current path suggests that market sentiment may take longer to stabilize unless macro conditions improve or liquidity returns. Traders are closely monitoring the chart for a potential flattening in OBV, which would signal equilibrium between buying and selling forces.
For now, Solana’s outlook remains technically bearish as the coin tracks within the downward-sloping red channel. Any shift in OBV direction could determine whether $SOL stabilizes or continues to lose ground heading into December.
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