Solana price briefly broke above $190 on January 12, rising 3% as the crypto markets rebound phase advanced further. Recent trading data shows that after double-digit losses last week, current SOL holders are growing reluctant to sell at current prices.
Solana bulls sets sights on $200 rebound after volatile week
Solana (SOL) briefly broke above $190 on January 12, as the broader crypto market extended its rebound phase. After enduring a steep decline last week, Solana has managed to stabilize, fueled by renewed market optimism.
Solana Price Action | SOLUSDT
Between January 5 and January 9, SOL price plunged 15.7%, slipping from $220 to $183 during the peak of the market sell-off. However, as selling pressure began to subside, SOL rebounded 3% over the past two days, climbing as high as $193 on January 12. This recovery suggests that market sentiment is slowly turning favorable, though the pace of Solana’s rebound pace appears limited compared to other major altcoins.
Solana rivals, including Cardano (ADA), Ripple (XRP), and SUI, have posted significantly larger gains during the same period. This underperformance highlights a looming bearish catalyst limiting SOL price recovery momentum.
Solana Trading Volume plunges by $3.1B as sell-fatigue sets in
Solana’s underwhelming performance compared to rival altcoins has been particularly notable over the last few days. A closer look at Solana’s trading data reveals a significant drop in SOL market activity in recent weeks, underscoring dwindling investor participation.
Santiment’s Trading Volume chart tracks the daily volume of spot market transactions involving SOL, offering real-time insights into shifts in market liquidity and investor interest. On January 8, Solana’s trading volume reached $5.02 billion, highlighting robust market activity. However, as the broader crypto market sell-off took hold, Solana sellers became increasingly reluctant to offload their holdings, contributing to rapidly declining volumes.
Solana Trading Volume | Source: Santiment
By January 11, Solana’s trading volume had plummeted to just $1.9 billion, marking a sharp $3.1 billion decline in just three days. This represents a staggering 61% drop in trading volume, even as SOL’s price fell by 15% over the same period. Such a disproportionate drop in trading volume relative to price typically signals weakening market participation and suggests that both buyers and sellers are growing cautious.
When trading volume plunges faster than price, it often signals that sell-fatigue has set in, with bearish momentum losing steam. While this could pave the way for a price rebound, the lack of liquidity also limits the potential for a sustained rally. For Solana, this dynamic reflects an ongoing tug-of-war between cautious optimism among holders and broader market headwinds dampening its recovery prospects
Solana Price Forecast: $250 Breakout Unlikely within Current Dynamics
Solana (SOL) price forecast remains cautious, as technical indicators paint a mixed outlook for the near term. SOL is trading at $186.82, well below the $198.65 mid-line of the Keltner Channels (KC). This highlights diminishing bullish momentum, compounded by the Parabolic SAR hovering above price candles, signaling sustained bearish pressure.
Solana price forecast | SOLUSDT
The Relative Strength Index (RSI) currently sits at 47.55, slightly below the neutral 50-mark. This suggests a lack of strong buying or selling pressure, leaving SOL vulnerable to further downside. The $175.70 lower boundary of the KC serves as immediate support, while a break below this level could trigger a decline toward $170. Conversely, a breach above the $198.65 resistance could reignite bullish optimism, targeting the upper KC limit of $220.76.
However, with trading volumes at a subdued 590,000 SOL, market participation remains lackluster, limiting the likelihood of a $250 breakout in the short term. Traders should watch for a surge in volume to confirm any directional breakout.
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