Solana Price Rejected at a Critical Level as DEX Volume Drops 20% — What Next for SOL?

The Solana worth is below strain after failing to interrupt a key resistance stage. Over the previous 24 hours, SOL has dropped 5.4%, extending its rejection close to the $89 zone. But the worth rejection didn’t occur in isolation.

Exclusive Dune dashboard information exhibits Solana’s DEX quantity fell sharply final week, presumably weakening purchaser conviction and triggering promoting from a few of the community’s strongest holders. This mixture might now play a decisive position in Solana worth prediction over the approaching weeks.

Solana DEX Volume Drops Over 20% as RSI Confirms Price Weakness

BeInCrypto’s unique Dune dashboard information exhibits Solana’s weekly DEX buying and selling quantity dropped from $95.6 billion within the week ending February 2 to $74.3 billion within the week ending February 9. This marks a sharp decline of $21.3 billion, or over 20%, in only one week.

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DEX quantity measures how a lot precise buying and selling exercise is going on on Solana’s decentralized exchanges. When quantity rises, it alerts sturdy participation and demand. This drop occurred at a crucial time.

On the 12-hour chart, Solana’s worth tried to interrupt above the $89 resistance level highlighted last week however failed. At the identical time, the Relative Strength Index (RSI), which measures shopping for and promoting momentum, fashioned a greater high whereas worth fashioned a decrease high between February 2 and February 15.

This known as a hidden bearish divergence. It alerts that though momentum seems to enhance, the underlying worth power is weakening. The divergence confirmed precisely when Solana didn’t clear $89. The weak DEX participation helps clarify why. With fewer merchants getting into the market, the bounce lacked the power wanted to interrupt resistance.

This is a crucial sign for Solana worth prediction. Without sturdy buying and selling exercise, rallies develop into more durable to maintain.

Long-Term Holders Begin Selling as Conviction Weakens

The drop in DEX exercise coincided with a main shift in holder habits. Some of Solana’s most necessary investor teams started lowering their holdings, per the HODL Waves metric, which partitions holders by time held. The greatest warning comes from long-term holders who held SOL for three to 5 years.

Their share of provide dropped from 9.77% on February 8 to 7.28% now. This represents a decline of two.49 share factors, or about 25.5%.

These holders are thought-about the strongest palms available in the market. They normally promote solely when confidence weakens considerably. Their promoting provides significant provide and reduces market stability. At the identical time, mid-term holders who held SOL for three to 6 months additionally diminished their positions.

Their share fell from 24.21% on February 3 to twenty.78% now. This marks a decline of three.43 share factors, or roughly 14.2%. The timing is crucial. Most of this promoting occurred between February 3 and February 9, the identical interval when DEX quantity collapsed.

This exhibits a clear connection. As buying and selling exercise weakened, conviction holders started exiting. This habits performs a main position in Solana’s worth prediction going ahead. When long-term holders promote, recoveries typically decelerate or fail utterly.

It additionally explains why the Solana price failed to sustain its recent bounce that began on February 6. The overlap between falling DEX participation and long-term holder promoting additionally explains why the Solana worth failed to interrupt above $89.

Solana Price Now Tests Critical $84 Support Level

The Solana price is now approaching certainly one of its most necessary help zones. The key stage to look at is $84.

Cost foundation heatmap information exhibits that between $83 and $84, greater than 6.44 million SOL had been accrued. This makes it one of many strongest near-term help zones as a result of many buyers might attempt to defend their positions.

If Solana worth holds this stage, stabilization might observe. But if SOL breaks beneath $84, the outlook adjustments rapidly.

The first draw back goal sits at $79. Below that, the following main help seems at $59, which aligns with the 0.618 Fibonacci retracement stage. This would signify a potential 30% decline from latest highs. This makes the present zone crucial for Solana worth prediction.

On the upside, restoration requires reclaiming the $89 resistance stage. A confirmed breakout above $91 would strengthen bullish momentum and open the trail towards $106. Until then, the worth stays weak.

The latest drop in Solana DEX quantity, mixed with long-term holder promoting and resistance rejection, exhibits weakening conviction. Unless long-term shopping for exercise returns and key resistance ranges are reclaimed, Solana worth prediction stays closely depending on whether or not the $84 help can maintain or fails within the coming classes.

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