The price of Solana dropped by 5% after the announcement of US tariffs, reflecting a broader market decline.
Futures market data shows that despite the recent price drop, interest in Solana is growing.
Technical indicators suggest that with increasing buying pressure, the price may reverse.
Solana (SOL)'s recent price drop reflects a broader trend in the crypto market. After the US president announced new tariffs, SOL dropped 24% within 5 hours.
This price movement reflects a larger market slump, with many cryptocurrencies losing 3% to 4% of their value. Despite these short-term fluctuations, analysts remain optimistic about Solana's recovery potential, with forecasts suggesting a target price of $220 before April 10.
Before the tariff announcement disrupted the market, Solana had been on the rise, causing SOL to dip below the $145 mark. However, some analysts believe the price drop is temporary.
However, as of the time of writing, Solana's trading price is $125.85, having increased by 0.56% in the past 24 hours. SOL's market cap has reached $64.49 billion, with a 24-hour trading volume of $3.13 billion, showing a trading activity increase of 2.81%.
In the past day, price fluctuations caused Solana to drop below $125, then rise above $128, and finally close at $125.85. SOL's circulating supply is 512.5 million, with a total supply of 597.53 million, while the trading volume relative to its market cap is 4.82%, indicating healthy trading activity and market participation.
Solana's futures open contracts show growing interest
Aside from price fluctuations, Solana's futures market data also indicates growing interest in cryptocurrencies. Over the past few months, both the price of SOL and its future open contracts have increased. From the end of December 2024 to early March 2025, the price of SOL surged from around $10 to over $150, matching the surge in open contracts.
Despite the recent price drop, future data shows that market participants are still actively engaging with Solana, with increases in both price and open contracts. This indicates that while short-term volatility may occur, Solana's long-term outlook could be influenced by sustained market speculation and interest in its future potential.
Derivatives market and sentiment analysis
Solana's derivatives market has also experienced volatility. In the past 24 hours, Solana's trading volume decreased by 10.66%, totaling $12.42 billion. The open contracts for SOL futures slightly decreased by 0.85%, amounting to $4.69 billion. In the options market, trading volume fell by 7.78%, while open interest dropped by 3.16%.
Solana's long/short ratio is currently at 1.0109, indicating balanced market sentiment. The largest SOL exchange, Binance, reports a higher long/short ratio of 4.4735, indicating that traders are more inclined towards long positions.
Technical indicators indicate the possibility of a reversal
In terms of technical indicators, Solana's relative strength index (RSI) is currently at 42.63, indicating that SOL is slightly bearish but not yet in the oversold region.
The MACD indicator shows a positive direction, but the MACD is still below the signal line. A crossover of the MACD line over the signal line will generate a buy signal.
Frequently Asked Questions:
Why did Solana's price drop recently?
After the US president announced new tariffs, Solana's price fell by 5%, reflecting broader market trends. This decline is part of a larger slump in the crypto market, with many cryptocurrencies losing 3% to 4% of their value.
What are the current prices and market cap of Solana?
As of the latest data, Solana's trading price is $125.85, with a market cap of $64.49 billion. The cryptocurrency's 24-hour trading volume is $3.13 billion.
Are analysts still optimistic about Solana's future?
Yes, analysts expect Solana to recover and reach the target price of $220 before April 10. Despite the recent decline in stock prices, future data and market interest suggest a positive long-term outlook.
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