Solana: Market sentiment indicates an impending price collapse
The amount of Solana (SOL) held on centralized exchanges has jumped to a two-week high, signaling increased selling pressure as the broader crypto market continues to lose momentum.
The balance of the exchanges is currently 31 million SOL, suggesting that investors are preparing to get rid of their assets.
This trend usually precedes a price decline, as tokens are often transferred to exchanges with the intention of being sold.
Adding to the bearish outlook, the SOL futures interest rate is in negative territory for the first time in over a week, currently at -0.0006%.
This is an indication of an increase in short positions, which further emphasizes the decline in sentiment.
If the selling pressure continues, SOL could fall below the current support level of $142.59, potentially reaching $123.49. However, an uptrend could lead to a rise towards $171.88.
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