Solana (SOL) experienced a notable decline in trading volume from $12.6 billion to $5.72 billion, indicating bearish activity amidst a potential price rally above $300. The decrease in trading volume underscores the bears' efforts to prevent Solana's upward price movement.
Trading volume, a critical metric in assessing market activity, has proven instrumental in understanding price movements. The current downturn in Solana’s volume, while the token is trading at $216, points towards a restrained optimism about reaching higher price points.
Moreover, the drop in active addresses from over 20 million to 17.98 million reflects reduced network engagement, potentially impacting Solana's market performance. This decline may suggest decreased interest in the network, affecting long-term price trajectory negatively.
The price chart highlights that bears effectively pushed Solana's price from $222.49 downwards, dimming short-term prospects for reaching $300. Increased selling pressure could drive Solana's price further down to $190.30 unless countered by new buying volumes.
Conversely, a resurgence in buying activity could reverse this trend, propelling Solana beyond $225 towards potential $300 targets, contingent upon heightened trading volume and activity engagement.
