Solana (SOL) is showing signs of recovery as market sentiment begins to shift to the bullish side, but the next major market move remains uncertain.
Recent data shows that trading activity on the SOL network has increased significantly, reflecting increased interest from traders. However, COINOTAG warns that the overall sentiment still points to a possible bullish reversal, saying, “Increased trading activity could be a sign of selling pressure.”
According to Artemis data, the number of daily transactions on the SOL network has reached around 67 million, the highest level in the last few months. This increase is usually associated with movements in the value of the asset and can be a precursor to price changes. However, according to the latest trading data, the increase in trading volume, despite the SOL price falling by 2.93%, suggests that the expected selling pressure may be building. SOL has fallen to $199.39 at its lowest level, approaching a historically important support zone.
This support level is usually associated with strong buying interest, which could create favorable conditions for a recovery in the short term. Also, the increase in the amount of SOL leaving the exchanges shows that traders are deciding to secure their assets in wallets and are committed to long-term investment despite market volatility.
This type of behavior is known for its outflows, which are usually indicative of bear market trends, but currently the exchange net flow is trending negative. Over the past four days, more than $264 million worth of SOL has been withdrawn from exchanges. However, SOL’s funding rate remains positive at 0.0057%, suggesting that bullish longs are paying fees to maintain their positions and supporting the market’s resilience to declines.
According to the latest data, $21.35 million worth of long positions were liquidated in the last 24 hours, resulting in significant losses for traders betting on a price increase. While this reflects a bearish bias in the short term, patterns seen on lower time frames suggest a more optimistic approach is likely to develop among traders.
Interestingly, short liquidations have exceeded $936,150 in the last four hours, while long liquidations have remained below $150,000. This trend reflects market optimism, hinting at a potential price recovery. Furthermore, open interest has increased by 0.62% in the same time frame, reaching $3.52 billion, reinforcing bullish market sentiment. The majority of current derivative contracts are biased toward an upward price movement.
In summary, while uncertainty remains for Solana (SOL), increasing trading volume, strong support levels, and a positive funding rate point to a strengthening bullish trend in the market. Investors will continue to monitor potential price movements, taking these factors into account.