Billy

bullish

Solana

Bitcoin

Solana price has been stuck in a deep bear market as the volume in its decentralized exchanges and futures open interest dipped.
Solana (<a href="https://crypto.news/price/solana/" rel="noopener noreferrer nofollow">SOL</a>) has risen for two consecutive weeks and was up by over 33% from its lowest point in August. Still, it remains in a bear market after falling by over 30% from the year-to-date high.&nbsp;
<h2 class="wp-block-heading" id="solana-s-dex-volume-retreats">Solana’s DEX volume retreats</h2>
Its price action has mirrored that of other cryptocurrencies like Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>), which are all in a bear market.&nbsp;
Solana’s sell-off has happened as the volume in its DEX platforms has fallen in the past few weeks. Data by <a href="https://defillama.com/crypto-etf/ethereum" target="_blank" rel="noopener noreferrer nofollow">DeFi Llama</a> shows that its DEX volume dropped by over 45% in the past seven days. In this period, it has handled transactions worth $7.12 billion while Ethereum has processed $8.9 billion.
Solana’s DEX volume has retreated because of the ongoing meme coin sell-off. Top Solana memes like Dogwifhat (<a href="https://crypto.news/price/Dogwifhat/" rel="noopener noreferrer nofollow">WIF</a>), Bonk (<a href="https://crypto.news/price/bonk/" rel="noopener noreferrer nofollow">BONK</a>), Popcat (<a href="https://crypto.news/price/popcat/" target="_blank" rel="noopener noreferrer nofollow">POPCAT</a>), and Book of Meme have all tumbled by over 50% in the past few months.
Solana has become the most popular chain for creating meme coins, due to fast speeds and low transaction costs. The launch of Pump.fun, a meme coin generator, has made it easier for people to launch Solana meme tokens.&nbsp;
<a href="https://www.coingecko.com/en/categories/pump-fun" target="_blank" rel="noopener noreferrer nofollow">Data shows</a> that these tokens have a combined market cap of over $425 million, with Michi, Daddy Tate, Mother Iggy, and Billy being the largest.&nbsp;
You might also like: <a href="https://crypto.news/solana-flips-ethereum-dex-volume-with-55b/" rel="noopener noreferrer nofollow"> Solana flips Ethereum DEX volume with $55b </a>
Meanwhile, Solana’s open interest in the futures market has stalled.
According to CoinGlass, futures open interest on Aug. 18 stood at almost $2 billion, the same level it has been in the past five days. The interest is much lower than the July 30 peak of $3.08 billion.&nbsp;
<figure class="wp-block-image size-full"><img loading="lazy" width="2750" height="958" src="https://crypto.news/app/uploads/2024/08/Solana-open-interest.jpeg" alt="Solana open interest">
 <figcaption>
 Solana futures open interest | Source: <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noopener noreferrer nofollow">CoinGlass</a>
 </figcaption>
</figure>
The waning open interest is likely because of the significant liquidations that happened earlier this month as cryptocurrencies slumped.
Solana’s bulls suffered liquidations worth over $39 million while shorts liquidations totalled $21 million on Aug. 8.&nbsp;
<h2 class="wp-block-heading" id="solana-has-bullish-technicals">Solana has bullish technicals</h2>
<figure class="wp-block-image size-full"><img loading="lazy" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/Solana-price.png" alt="Solana price">
 <figcaption>
 Solana price chart| Source: <a href="https://www.tradingview.com/symbols/SOLUSD/?exchange=COINBASE" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
 </figcaption>
</figure>
On the positive side, Solana has found strong support at the 50-weekly moving average, where it failed to move below earlier this month.&nbsp;
The coin has also formed a doji pattern, which is characterized by a small body and long upper and lower shadows. It is one of the most popular reversal signs in the market.&nbsp;
Additionally, Solana has formed a cup and handle pattern, a sign of a bullish continuation. Therefore, the coin may continue a bullish trend in the coming weeks as buyers target the key resistance of $180.
You might also like: <a href="https://crypto.news/solana-enters-the-150-zone-while-traders-bet-on-price-fall/" rel="noopener noreferrer nofollow"> Solana enters the $150 zone while traders bet on price fall </a>

Solana forms bullish patterns as DEX volume, open interest slip

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