Analysis

Is Solana (SOL/USD) consolidation a wait for takeoff or a further slide?


  • Solana token fell essentially the most in November

  • Social metrics are unfavorable for the cryptocurrency

  • SOL has been consolidating for weeks and faces additional draw back

Solana (SOL/USD) was one of many worst-performing cryptocurrencies in November. The cryptocurrency got here from a excessive of $38 on November 5 however now trades at simply$13.55. The losses got here within the wake of the FTX collapse. Nonetheless, for nearly three weeks, SOL has been consolidating at or above $13. Does this sign the entry of consumers?

Solana’s consolidation comes amid a troubling on-chain exercise. In keeping with Santiment information, Solana’s spot and futures markets are struggling, with the commerce volumes at month-to-month lows. As of December 2, the open curiosity on Solana was $208.9 million, a decline of 1.25%.

Apart from, short-position trades had been lively on Solana, with the funding charges remaining within the unfavorable territory. Additional indications had been that there have been extra lengthy liquidations ($207,000) than quick liquidations ($89,000) value of SOL.

Clearly, the information is in opposition to SOL. Social metrics present restricted upside, with the sentiment unfavorable. Consequently, the most recent consolidation could sign sellers’ exhaustion somewhat than consumers’ entry. A break to the draw back would welcome a cheaper price for SOL.

SOL consolidates at $13 amid bearish momentum

SOL/USD Chart by TradingView

Technically, SOL is bearish within the longer-term outlook. The RSI is escaping the oversold stage however nonetheless stays method beneath the midpoint. A slight restoration noticed SOL transfer to the 20-day MA, however the worth upside remains to be muted.

When to purchase SOL?

Solana’s worth remains to be bearish. Traders seeking to purchase SOL ought to await the bear market to subside earlier than scooping the token. A break beneath the consolidation zone may see SOL hit single-digit costs.

The place to purchase SOL

eToro

eToro presents a variety of cryptos, corresponding to Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro customers can join with, be taught from, and duplicate or get copied by different customers.

Purchase SOL with eToro at this time

Binance

Binance is likely one of the largest cryptocurrency exchanges on this planet. It’s higher suited to extra skilled traders and it presents a lot of cryptocurrencies to select from, at over 600.

Binance can be identified for having low buying and selling charges and a a number of of buying and selling choices that its customers can profit from, corresponding to; peer-to-peer buying and selling, margin buying and selling and spot buying and selling.

Purchase SOL with Binance at this time

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