TLDR

• Solana has dropped to $130, its lowest price in five months
• Trading volume has collapsed by 61%, indicating weak buying pressure
• The TD Sequential indicator has flashed a strong buy signal
• SOL/BTC pair has plunged to a two-year low
• Open Interest has increased slightly to $3.95 billion amid weak accumulation

Solana has reached a critical juncture in its price action. The cryptocurrency has plunged to $130, marking its lowest level in five months.

This price point represents a key demand zone for the digital asset. The drop follows a break below the previous $200 support level.

Market conditions remain uncertain for Solana holders. The cryptocurrency has fallen over 30% in the past month alone.

This decline comes amid broader market volatility. Many high-cap assets have been pushed below key support zones during this period.

Technical indicators are showing mixed signals. The TD Sequential indicator has flashed a strong buy signal for SOL.

This widely used tool suggests a potential trend reversal may be forming. However, other metrics paint a less optimistic picture.

Trading Analysis

Trading volume has collapsed dramatically for Solana. Current data shows a 61% drop in trading activity.

This major decrease in volume points to weak buying pressure. The expected “buy-the-dip” response from investors has not materialized.

Daily chart patterns continue to show weakness. Red candlesticks dominate the charts, indicating ongoing selling pressure.

Profit-taking from SOL’s earlier March rally to nearly $180 appears to be continuing. This selling activity is weighing heavily on the current price action.

The SOL/BTC trading pair shows even more concerning trends. This ratio has plunged to a two-year low.

This metric suggests this cycle is Solana’s weakest so far when measured against Bitcoin. It indicates investors may be rotating away from SOL and into other assets.

Open Interest for Solana derivatives has seen a small uptick. The current OI stands at $3.95 billion, reflecting a 1.63% increase.

This rise in Open Interest comes during a period of weak accumulation. Just one week ago, OI peaked at $5.31 billion as SOL tested the $180 level.

The following day saw a dramatic shift. Open Interest nosedived to $4.20 billion as heavy selling erased 20.45% of SOL’s gains.

While rising Open Interest typically signals bullish sentiment in strong uptrends, the current market conditions complicate this interpretation. In volatile markets, increasing OI can actually heighten the risk of mass liquidations.

Historically, price levels similar to the current $130 range have attracted buyers. This has established the zone as a strong demand area in previous market cycles.

Bitcoin’s recent consolidation phase might provide some relief. Such periods often encourage investors to rotate capital into altcoins like Solana.

However, immediate recovery appears unlikely without broader market improvement. Solana remains at a crossroads with the threat of deeper corrections still present.

With market sentiment fragile and current price action unstable, the $130 support level will be crucial to watch in the coming days and weeks.