Solana (SOL) Recovers After a Week of Declines, Shows Upward Trend
Solana Recovers from Previous Downturns
Solana [SOL] experienced a series of declines at the end of last week, and this downward trend continued at the beginning of the current week. However, efforts appear to have been made to initiate a recovery this week. The question is, to what extent have these recovery efforts been successful?
Solana’s Recovery Mission
A review of the Solana price trend showed a significant drop at the beginning of the week on January 22, with a nearly 8% decline. This decline marked the peak of consecutive declines that SOL had experienced since January 18, when it recorded a decline of about 7.5%. After the nearly 8% drop on January 22, it strived to initiate a recovery.
The chart showed that Solana has had more upward trends in recent days and reached its highest point on January 26. At the end of the trading day on January 26, Solana had gained over 6% and was trading above $92. At the time of writing this article, however, the upward trend has taken a break, a slight decline has been observed, and SOL was trading at about $91.8.
In addition, the recent days of the upward trend have positively influenced Solana’s Relative Strength Index (RSI) and positioned it on the neutral line. This suggests that the bearish trend is subsiding as the price undergoes a recovery.
Traders Still Hold Their Cards Close to Their Chest
An examination of the Solana financing rate on Coinglass shows no significant movement in recent days. However, it is noteworthy that the financing rate has remained consistently positive. This suggests that buyers continue to dominate, albeit with a less aggressive stance. At the time of the current analysis, the financing rate was about 0.01.
Furthermore, a review of the open interest shows a similar lack of substantial movements. At the time of writing this article, the open interest is about $1.2 billion, suggesting a relatively stable situation in this market segment.
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Solana Holds Its Own in the NFT Space
The Solana network and its token have caught attention, particularly due to their performance in the NFT space. An examination of the NFT sales data on Crypto Slam showed that Solana achieved the third highest NFT sales volume in the last 24 hours. At the time of writing this article, its sales volume was over 6 million. A further analysis of the last seven days also positions Solana at the third highest volume, reaching nearly $52 million.
Sources: Trading View, Coinglass, Crypto Slam.
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