The significant drop indicates a cooling of interest in Solana-based memcoins.
If interest rates continue to fall, the #SOL price could test a lower support level around 145.90.
Trading volume on decentralized exchange #Solana [SOL] decreased in 1 day. As of 5/26/05, Ambcrypto's analysis of the Artemis dashboard showed that volume reached 998,400 million.
3 days earlier, this figure was over 1.5 billion pounds. This drop was in stark contrast to the #blockchain record of March 4. Since then, Solana's DEX volume has reached an all-time high of $6,600 billion, totaling a monthly total.
Given the recent drop and the fact that month 5 is coming to an end, the monthly total may be less. The previous spike could be due to the high demand for memcoins online.
Thus, the decrease could mean that the interaction with memcoins launched in Solana is no longer as massive as it used to be. In addition, this development seems to have sidelined SOL, the main token of the ecosystem.
SOL's price at the time of publication was £161.49. A few days ago, the price was approaching £190. If the number of DEX continues to fall, SOL could also remain down.
This is because the demand for cryptocurrencies is relatively tied to memcoin transactions. For those who don't know, some memcoins can be exchanged in USDC, but most of them require SOL.
Therefore, if the purchase of memcoins decreases, the SOL bid may decrease. In addition, other indicators can also predict the future direction of the Solana price and AMBCrypto takes them into account.
Another indicator we analyzed was Solana's open interest (OI). 1 According to Santiment, OI has decreased to 1.90 billion. As of 5/20, this figure was almost 22.2 billion.
OI is the value of all open positions in a contract. If it increases, it means that net positions are increasing and more money is coming into the market. In this case, the increase acts as a bullish signal.
Read us at: Compass Investments
