Solana is trading at a 2.61% decrease over the last 24 hours, currently valued at $181.15 per coin. The altcoin is also down by 3.8% in the week, with a near 10% drop over the last thirty days.
A Change of Character on August 14 flipped Solana’s bullish momentum, leading the asset into a now week-long bearish trend. While selling pressure has been strong since, buyers are now fighting to keep the $180 resistance level amid major uncertainties in the market.
After all, Solana’s nosedive is not particularly its fault, as most cryptocurrencies in the market have followed the same trend. Both Bitcoin and Ethereum are down by nearly 5% in the week, while XRP is seeing bigger losses at 5.70%.
The market’s downturn began after weak economic prints laid down uncertainty and risk aversion among investors. So far this month, we’ve seen both higher-than-expected inflation data coming out, as well as signs that the U.S. labor market is slowing down.
Adding to the pressure, Solana’s network activity has seen a dramatic contraction, with active addresses plunging nearly 50% from 5.4 million in June to just 2.72 million as of August 21. Open interest has also declined by 3.46%, signaling reduced speculative appetite among traders.
Meanwhile, bulls have been consistently outmatched, suffering higher liquidation volumes than bears every single day over the past week, which reflects a broader loss of confidence in upward momentum.
Source: Coinglass
The MACD indicator flipped bearish two days ago, while trading volume remains on a decline. While certainly painting a not-so-optimistic picture for traders going long, the fact that volume is declining signals that the market is now awaiting the next macro update before moving forward.
Many were expecting this week’s Fed Minutes to refuel optimism in the market, as it could have pointed out whether the Fed is leaning toward a more dovish stance in interest rate cuts or not. While analysts still anticipate that to be true, the market is now not as sure if the Fed will finally lower interest rates at the next FOMC meeting in September.
If Solana bulls are able to maintain the current $180 zone until the next major economic development, $SOL could once again go on another run above $200.00. Tomorrow, the Federal Reserve Chair Jerome Powell is expected to speak and answer journalists’ questions—and if he so decides to hint at possible rate cuts, Friday could very well be a turning point for Solana. As always, pay attention to how volume is interacting with price, and drink more water.
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