- Solana price goes nowhere for a third week in a row.
- As traded volume declines rapidly, SOL lacks any interest from both bears and bulls.
- The issue is that any move could enlarge exponentially with less volume.
Solana (SOL) price action has significant issues, even without considering the current financial market dynamics and the past week’s events. SOL is drying up as a water well in the desert and is waiting to see interest pick up soon. As the last kid left standing when choosing your players for dodgeball, SOL is left behind as traders turn their back to the altcoin.
SOL is the last kid picked for the team
Solana price action is not in good health. The weekly traded volume is rapidly declining and flirting with the lowest levels we have seen throughout 2022. This decline in volume means that any trader in SOL is at risk of pulling its cash out of there at any given moment. The balance between buyers and sellers is very fragile and could tip the scale quickly with nosedive moves and falling knives.
SOL is thus in desperate need of some risk-on appetite in the markets. But after the messages from the central banks, it does not look that will happen anytime soon. As volume further declines, expect to see price action set to collapse in the coming weeks and dip towards $5.10, bearing 60% losses and a big loss of market cap for SOL.
SOL/USD weekly chart
In case more buyers come in, in the wake of 2023 and build up new positions for portfolios that are set to start with a clean slate, SOL would see uptick moves being enlarged due to the lack of volume. So price action could quickly increase towards $19.04 against the pivotal level and the 55-day Simple Moving Average (SMA). Once broken above, price action could be printing a 140% price increase against the 200-day SMA near $30.