Solana’s price drops below $110, once again trailing behind BNB
Solana (SOL) has been facing difficulties in maintaining its position above $110 in the past week. The recent drop in price has led to its surrender to BNB once again.
As of the time of writing, SOL has experienced a 3.8% decline in the past 24 hours and is currently trading at $109.5. The asset’s market capitalization has decreased from approximately $50 billion to $47 billion, making it the fifth-largest cryptocurrency.
However, Solana’s 24-hour trading volume has seen a significant increase of 16%, reaching $3.3 billion.
According to a recent report, the Solana network has surpassed Ethereum in terms of weekly stablecoin trading volume. Solana’s seven-day stablecoin volume has reached $103 billion, while Ethereum’s volume is around $90 billion.
Santiment data shows that social activity surrounding the SOL token has surged by 76% in the past day, following a consistent decline since December 24.
On the other hand, the total open interest (OI) in Solana has decreased from $1.3 billion to $1.26 billion in the past 24 hours, according to Santiment. This decline suggests that approximately $40 million worth of SOL perpetual contracts have either been closed or liquidated at this price point.
Santiment data also reveals that the total funding rates for SOL currently stand at 0.08%. This indicates that long-position holders are dominating over short-position holders at this price point.
Furthermore, the Solana Relative Strength Index (RSI) has been steadily rising since December 30. According to Santiment, SOL’s RSI has reached a seven-day high of 77.
While most traders are betting on long positions, the RSI indicator suggests a high level of price volatility.
In a report on January 1, it was revealed that Solana’s decentralized exchange (DEX) volume exceeded $28 billion in December. This rally was triggered by a series of airdrops and meme coin mania, which also helped the SOL token reach $120 in late December.
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