 ▲ Solana (SOL) |
NewsBTC, a media outlet specializing in blockchain, explained that Solana (SOL) currently has half the upside and downside potential.
Looking at the current Solana price technical indicator, it appears that the 50-day moving average (MA) is below the 200-day MA. This suggests a short-term downward trend. Currently, participation in the cryptocurrency community appears to be sluggish, as both Solana's social mentions and transaction volume have decreased.
In addition, as a result of Santiment's on-chain data analysis, it was confirmed that trading volume decreased by $3 billion as of June 7 (local time).
However, the relative strength index (RSI) remains neutral, indicating the possibility that some fundamental buying pressure may exist.
Looking at the current derivatives market, there are some signs of strength. Looking at the current overall long/short position ratio of Solana derivatives, it appears that investors have not made a decision, but the long position ratio appears to be higher on some exchanges such as Binance and OKX.
Analysts' price forecasts are also mixed.
Cryptocurrency platform CoinCodex predicted that it would reach $185 by July 10th. However, the fact that Solana's Fear and Greed Index corresponds to 'greed' suggests that excessive evaluation may have been made.
AMB Crypto, a cryptocurrency media outlet, noted that the Solana network's recent testnet v1.18.15 upgrade did not lead to an increase in token prices. The Solana Foundation expelled certain validator groups involved in the sandwich attack from the delegation program and recommended an upgrade to Testnet v1.18.15, which resolved the network suspension issue.
In the past, Solana network updates led to an increase in Solana token trading. However, this time, the token price was found to have fallen by about 4% within 24 hours after testnet deployment.
The media focused on on-chain indicators showing a decline in Solana price, transaction volume, and open interest (OI), and mentioned the possibility of further decline. As of June 10 (local time), Solana open interest decreased to $2.19 billion, according to Coinglass data.
