#Solana ($SOL ) has fallen 8 percent in the past 24 hours, dropping below $200 for the first time since early November.
This decline coincided with pullbacks and liquidations in the market. However, Solana traders seem optimistic that this decline will lead to a quick recovery.
With#Solanafalling below $200, traders would be expected to be cautious about anticipating a price increase. However, data shows otherwise. According to cryptocurrency data platform Queenglass, Solana’s buy/sell ratio is on the rise. The buy/sell ratio indicates whether traders are anticipating a price increase or decrease.
When the ratio is declining, the expectation is negative. However, the ratio is increasing and is set to exceed the 1 level. The mentioned development reflects traders’ confidence that the SOL decline will be short-lived.
Solana had previously formed a bull flag pattern indicating that the price could rise to $300. However, this pattern was invalidated when the price fell below $209.58.
Moreover, the trading volume of the popular altcoin is still decreasing, with sellers making up the majority of it. If this trend continues, the price of SOL could drop to $153.97. If the bulls prevent the price from falling below $170.75, an uptrend could start again. In such a scenario, the $264 level could be targeted as resistance.
The restart of the meme coin craze is another factor that could positively impact the price of #Solana . If the inflows of funds into meme coins increase, the Solana system could see more demand.
