- Solana DEX trading volume fell from over $1.5 billion to $984 million due to a decline in meme coin trading.
- SOL has fallen from a peak of around $190 to $161.49, with open interest also declining.
Solana Blockchain’s decentralized exchange (DEX) saw a noticeable drop in daily trading volume. On May 26th, Artemis The dashboard showed that trading volume had fallen to $984 million, a significant drop from over $1.5 billion in trading volume three days prior. The drop contrasts with Solana’s performance in April, when DEX volume hit a monthly record high of $60 billion.
The recent drop in trading volume can be attributed to a decline in interactions with meme coins issued on the Solana network. Previously, a surge in meme coin trading had driven trading volumes to unprecedented levels. However, as the meme coin craze subsided, so did the volume. Solana decentralized exchange.
Decreasing open interest signals a potential downtrend
Another key indicator of Solana’s potential decline is the open interest (OI) on the network. According to data from Santiment, Solana’s OI has fallen to $1.9 billion from approximately $2.2 billion on May 20. Open interest measures the total value of all open positions within a contract. An increase in OI typically indicates a bullish trend as more capital is flowing into the market. Conversely, a decrease in OI indicates liquidity is being withdrawn, indicating a bearish trend.
The decline in Solana’s OI suggests weakening market sentiment. As liquidity evaporates from SOL contracts, the likelihood of an uptrend decreases. This decline in OI correlates with a decline in the price of SOL, which rose to $188.45 when the OI was high. If the current trend continues, SOL could fall further and reach $145.90.
Bullish forecasts and strong market performance
Crypto analyst trader Tardigrade has made a bold prediction about Solana’s future price trajectory. Tardigrade’s analysis highlights that Solana has recently broken out of a consolidation pattern, suggesting a possible rise towards the $1,000 level. This optimistic outlook comes as SOL is trading at $170, indicating significant growth potential.
Macro Structure $sol 🔥#Solana It has broken out of the second triangle off the recent bottom and is heading towards $1000 🚀
Have you heard of it? #SocialFi upon #Solana?
It’s interesting that now you can share images with your friends via private messages (wallet 👛 to wallet 👛) via the blockchain… pic.twitter.com/yoSnLK9dSs— Trader Taldigrade (@TATrader_Alan) May 23, 2024
Tardigrade’s prediction is supported by Solana’s strong market performance. Despite short-term fluctuations, including a 4.50% drop in the past 24 hours and a 1.30% drop in the past week, the overall outlook for SOL remains positive. The cryptocurrency’s ability to hold support levels amid market volatility highlights its strength and investor confidence.
This drop in trading volume also affected Solana’s native token, SOL. At the time of reporting, the price of SOL was $165in 24 hours 2%It hit a high of nearly $190 just a few days ago, but is now falling. Closely related to meme coin tradingAs many meme coins require SOL to trade, SOL is on the rise. Also, the market cap increased by 5% to $74,467,605,568. The recent approval of the long-awaited Ethereum ETF is expected to have a positive impact on the entire altcoin market, including Solana.
This bullish sentiment across the market could drive the price of SOL higher.Ethereum ETF Approval Not only does this signify greater institutional trust in the cryptocurrency market, but it also paves the way for other blockchain projects to gain mainstream attention.
