.Dramatic Volume Decrease: Trading volume has plummeted from $1.99 billion in November to just $14.57 million by March 2025, representing a staggering 99% decrease
. This substantial reduction in volume suggests weakening market participation and could make it challenging to sustain a rally towards the $146 target.
Recent Volume Collapse: A more recent 61% drop in trading volume has been observed, bringing the volume down to $130 million
. This sharp decline indicates weak buying pressure, which could hinder the price movement towards the $146 target.
Trading Volume Patterns
Analyzing trading volume patterns provides insights into market dynamics:
DEX Volume Milestone: Solana-based decentralized exchanges (DEXs) achieved approximately $3.8 billion in 24-hour trading volume on January 6, 2025, surpassing Ethereum and Base combined
. This milestone highlights the growing dominance and liquidity of Solana's DEXs, particularly Raydium, which could support increased trading activity.
Derivatives Market Activity: Trading volume in Solana's derivatives market has dropped by 28.06%, while open interest has increased slightly by 0.81%
. This mixed signal in the derivatives market indicates cautious sentiment among traders, which could impact the path to $146.
Volume-Price Divergence: The significant decrease in trading volume coupled with price fluctuations suggests a potential divergence. This divergence could indicate that the current price levels may not be supported by strong buying pressure, making the $146 target more challenging to achieve without a substantial increase in volume.
Trade closed: target reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.