Solana (SOL/USD) price movement should worry buyers

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  • Solana Token has been consolidating for a month

  • FTX crash has been a blow to SOL price and recovery

  • SOL trades in thin volumes and could potentially decline

Solana (SOL/USD) is trading at $13. The cryptocurrency has remained at this key level for a month now. This level has been reached after heavy selling. This gives confidence to buyers that SOL is consolidating ahead of a possible takeoff. However, it is also true that SOL is only a potential bear leg, and the coin will reach the $10 level or below. The fundamentals have also not been favourable.

coinjournal first informed of That activity was on the decline on the Solana blockchain. This also comes as investors lose faith in the declared Ethereum killer. Earlier this year, frequent network hacks triggered a bear market for SOL amid the ongoing crypto winter. The latest blow now comes from the FTX crash in November, which took SOL down to $13. However, SOL continues to struggle, despite other major cryptocurrencies making some comebacks. A month after the exit from FTX, investors are still not convinced.

Solana Compass shows Alameda Research still holds 48.6 million Solana tokens. The total value of the tokens is approximately $700 million, representing approximately 9% of SOL in circulation. Obviously, such reports could spell doom for SOL.

SOL is trading with weak volumes at $13

SOL/USD chart by TradingView

Looking at the daily chart, SOL trades with negligible and declining volumes despite holding the $13 support. The level coincides with the 20-day MA but is below the 50-day MA. Although the MACD indicator is correcting slightly, the momentum is weak and bearish.

From a technical perspective, SOL is consolidating but as buyers weaken on the developing support, the pressure from the bears could increase.

What next for SOL?

A weak trading volume suggests that buyers avoided SOL even as the price strengthened towards $13. Although the consolidation is positive and may give time to buyers to push the price higher, the coin is under pressure. Investors should be cautious first buy sol,

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