- Solana faces resistance at $217.96 and support near $195.72, with potential downside risks.
- Derivatives market shows mixed sentiment, with long position liquidations signaling uncertainty among traders.
- Strong network activity and institutional support indicate long-term growth potential despite recent price fluctuations.
Recently, the price of SOL dropped by 8.68%, trading at $197.05. Despite this, SOL gained 4.31% over the past week. Traders are now watching closely to see whether Solana can recover and break through the $200 mark.
Bearish Signals and Technical Indicators
SOL has dropped below a key bullish trendline and the Fair Value Gap (FVG). The 200-day Moving Average (MA) at $217.96 now serves as strong resistance. Any attempt to push past this level could meet significant challenges. Immediate support rests around $195.72. If this breaks, SOL might fall to $180.
A decline to this level could test the market’s strength and lead to increased volatility. Despite a bearish trend, Solana’s ability to maintain support at key levels may indicate a recovery is possible. Traders are watching for signs of strength, hoping for a move back above $200 to test the higher resistance.
Mixed Sentiment in the Derivatives Market
While trading volume increased by 94.85%, Open Interest—OI, dropped by 10.68%, reflecting a reduced appetite for risk. Despite this, options activity surged, with a significant rise in open interest. Traders betting on a rebound may still see potential, even if recent liquidations caught many off guard.
Long positions took the brunt of the liquidation losses. $10.62 million in long positions were liquidated compared to $4.64 million in shorts. This signals traders expected a recovery, but the price dip caught them by surprise. The mixed data suggests uncertainty but leaves room for possible price rebounds.
Additionally, institutional involvement, like Coinbase’s integration of liquid staking with Solana, supports its growth potential. Even with fluctuating prices, network strength shows the long-term viability of the platform.
The post Solana’s Path to $200: What Do Key Indicators Signal? appeared first on Cryptonewsland.
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