Solana (SOL) price falls in the short term - focus on sideways trend
Why did Solana (SOL) price fall today?
Solana price failed to break above the upper limit of the accumulation range, and buyer confidence took a hit.
Solana’s SOL price is currently down 10% on the weekly chart, almost erasing last week’s gains. This correction has rippled across the market, with the total cryptocurrency market cap down 7.8% on August 28.
Solana has been trading sideways since early April, with prices fluctuating between $162 and $127 for more than 70% of the time. This particular range has been acting as an accumulation zone, with Solana testing both the upper and lower limits over the past 5 months. On a few occasions it broke above $162, but fell back into the range within 10 days.
Solana’s open interest (OI) has fallen 12% over the past day. The 16% drop in SOL prices in August was accompanied by weakness in the derivatives market, with OI falling from $2.83 billion to $2.08 billion. More than $15 million in liquidations further added to the bearish pressure, with $13 million in long positions being liquidated.
Another reason for SOL’s current bearish pattern is the negative spot net inflows over the past month. Solana suffered $526 million in spot selling, ranking third among the top ten crypto assets. And, while all assets had negative spot net inflows, Solana had the most selling pressure relative to market cap.
To sum up, Solana could drop another 12% in the coming week.
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