Solana Price Rejected at a Critical Level as DEX Volume Drops 20% — What Next for SOL?
Solana's price fell after rejecting the $89 resistance, coinciding with a 20% drop in DEX volume and selling by long-term holders.Summary
The Solana price experienced a 5.4% drop over 24 hours, failing to break the critical $89 resistance level. This price weakness is linked to a significant decline in network activity; Solana's weekly Decentralized Exchange (DEX) volume fell by over 20%, dropping from $95.6 billion to $74.3 billion in one week. This reduction in trading activity coincided with a hidden bearish divergence on the 12-hour chart, signaling weakening momentum.
Furthermore, conviction among holders appears to be decreasing, as long-term holders (SOL held 3-5 years) reduced their supply share by about 25.5%, and mid-term holders (3-6 months) reduced theirs by roughly 14.2%. This selling pressure from strong hands exacerbated the price rejection at $89.
Currently, Solana is testing the crucial $84 support zone, where significant accumulation occurred. If this level holds, stabilization may occur; however, a break below $84 could lead to a target of $79, with a further drop potentially reaching $59. Bullish recovery requires reclaiming $89, with $106 as the next upside target.
(Source：BeInCrypto)