Solana Price Recovery Hinges on 3 Key Metrics; One Could Even Trigger a Short-Term Rally
The post Solana Price Recovery Hinges on 3 Key Metrics; One Could Even Trigger a Short-Term Rally appeared on BitcoinEthereumNews.com. Solana’s dream run toward $200 just a few weeks ago now feels like a distant memory. After shedding nearly 10% in the last seven days, the Solana price has come under pressure, but not all hope is lost. Despite the decline, Solana is still up 10% over the past three months, and a trio of key market signals are now hinting that a recovery could be in the works. One of them, a rare chart-based formation, could even trigger a short-term rally if it plays out. Exchange Selling Pressure Drops 10%, Signaling Less Dump Risk The first key shift comes from Solana’s balance on exchanges, which has dropped sharply from 33.06 million on July 23 to 30.78 million SOL on August 5; a fall of nearly 10%. This means fewer tokens are sitting on centralized exchanges, a classic sign of reduced selling pressure. Solana price and dipping exchange balances: Glassnode More importantly, a bullish crossover has occurred on the same chart: Solana’s price has once again moved above the exchange supply trendline. Historically, when this happens, short-term rallies often follow. For instance, on July 16, when Solana’s price crossed above this supply line, SOL jumped from $173 to $205 in six days. A similar move happened on July 24, where the price rose from $182 to $188 in just three sessions. The same crossover occurred at $169, and although the price has since corrected, the pattern remains worth watching. Institutional Futures Hold Steady While Price Slides The second signal of strength comes from institutional derivatives. Solana’s CME (Chicago Mercantile Exchange) futures open interest has remained steady despite the spot price falling, forming a bullish divergence of sorts. For example, on August 1, CME open interest held at 3.07 million while SOL’s price fell from $162 to $158; but then it…
The post Solana Price Recovery Hinges on 3 Key Metrics; One Could Even Trigger a Short-Term Rally appeared on BitcoinEthereumNews.com.
Solana’s dream run toward $200 just a few weeks ago now feels like a distant memory. After shedding nearly 10% in the last seven days, the Solana price has come under pressure, but not all hope is lost. Despite the decline, Solana is still up 10% over the past three months, and a trio of key market signals are now hinting that a recovery could be in the works. One of them, a rare chart-based formation, could even trigger a short-term rally if it plays out. Exchange Selling Pressure Drops 10%, Signaling Less Dump Risk The first key shift comes from Solana’s balance on exchanges, which has dropped sharply from 33.06 million on July 23 to 30.78 million SOL on August 5; a fall of nearly 10%. This means fewer tokens are sitting on centralized exchanges, a classic sign of reduced selling pressure. Solana price and dipping exchange balances: Glassnode More importantly, a bullish crossover has occurred on the same chart: Solana’s price has once again moved above the exchange supply trendline. Historically, when this happens, short-term rallies often follow. For instance, on July 16, when Solana’s price crossed above this supply line, SOL jumped from $173 to $205 in six days. A similar move happened on July 24, where the price rose from $182 to $188 in just three sessions. The same crossover occurred at $169, and although the price has since corrected, the pattern remains worth watching. Institutional Futures Hold Steady While Price Slides The second signal of strength comes from institutional derivatives. Solana’s CME (Chicago Mercantile Exchange) futures open interest has remained steady despite the spot price falling, forming a bullish divergence of sorts. For example, on August 1, CME open interest held at 3.07 million while SOL’s price fell from $162 to $158; but then it…
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