What’s Next for Solana (SOL) After Daily Volume Jumps Back to $13 Billion

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As a seasoned researcher with years of experience in the volatile world of cryptocurrencies, I must admit that analyzing Solana’s (SOL) recent surge in daily volume and price is an intriguing prospect. With my fingers on the pulse of this dynamic market, I can’t help but feel a sense of déjà vu when seeing SOL’s volume climb to $13 billion for the first time since November 22 – the same day it reached its all-time high.

Solana’s daily trading volume reached $13 billion once more, marking the first time since November 22, indicating increased activity surrounding the cryptocurrency. This spike in volume follows a minor price rise, pushing SOL from $230 to $239 over just a few hours.

Given the altcoin’s price appears to be leveling off and its on-chain activity seems to be picking up, might Solana be poised for a possible surge or breakthrough?

Solana Sees All-Round Increase In Key Areas

As reported by Artemis data, it was on November 22 that the daily trading volume of Solana exceeded $13 billion for the last time. Notably, this day also marked SOL’s peak to a brand-new record high. The trading volume serves as a measure in monetary terms, indicating the total amount of cryptocurrency traded during a specific timeframe.

A high amount of trading activity is often seen as necessary for a substantial change in price. Yet, this isn’t always true. For instance, increasing volume during decreasing prices might signal a prolonged downturn. Conversely, when volume increases together with the price, it suggests robustness in the upward trend.

For Solana, the surge in trading volume as its value reached $239 implies a potential short-term increase in value, indicating a bullish trend.

Additionally, does this scenario imply a possibility for Solana’s price to regain its record peak? To evaluate this prospect, BeInCrypto examines Open Interest (OI) as an indicator.

The OI represents the total number of open positions in a contract. It increases or decreases based on net open positioning activity. While price increases alongside rising OI may suggest aggressive buying, technically, the ratio of buyers to sellers remains 50/50 since every trade requires both.

Rather than an increase in Open Interest (OI) showing a decrease in involvement, it signals market participants boosting their net exposure, demonstrating growing interest in the asset. On the other hand, a drop in OI suggests lessening overall positioning, hinting that traders are winding down contracts or leaving the market.

Based on data from Santiment, the Open Interest (OI) for Solana has risen significantly to approximately $4.05 billion. Given this growth, it’s possible that the price of SOL could climb even higher than its current level of $239 in the near future.

SOL Price Prediction: Retracement to $220 Possible

On a daily basis, it appears that supporters of Solana (SOL) are holding strong at their defense line around $226. Notably, on November 17, as these bulls maintained the support, Solana’s price surged upwards to reach $264.

Given history tends to repeat itself, if it’s a pattern we see with altcoins, their value might mirror past performance. As you can see from the data similar to Artemis, Solana’s daily trading volume is on the rise, as indicated by the chart below. If this upward trend persists, then it’s possible that SOL could escalate towards $264 or even higher in the near future.

If there’s an escalation in selling activity, it may prevent the SOL price from rising. Instead, it could potentially drop to $220. In a very pessimistic outlook, the token might even fall to $196.

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2024-12-06 14:06