Ethereum

Solana

Bitcoin

Drops

Solana, a prominent cryptocurrency, closed with a notable weekly return drop of 19.14% at the end of August, marking its second-worst performance in 2024. This downturn follows an even more significant drop of 25.19% recorded in July. The derivatives market has been particularly influential in driving the current price dynamics. 
As the cryptocurrency faced a downturn, the derivatives market took a leading role. Last week saw a sharp 12% reduction in Solana’s open interest (OI) within a single day, following a price decline below $150. 
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 <img fetchpriority="high" decoding="async" width="1024" height="576" src="https://www.cryptotimes.io/wp-content/uploads/2024/09/image-5-1024x576.png" alt="sol in downtrend" class="wp-image-199229">
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 Source: <a href="https://www.coingecko.com/en/coins/solana" target="_blank" rel="noreferrer noopener nofollow">Coingecko</a>
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Despite further price decreases, OI has subsequently increased by 20%. This rise during a market drawdown suggests aggressive short-selling among futures traders. 
Adding to the bearish outlook, the funding rate for Solana has remained negative for the longest stretch in 2024, currently standing at -0.001. This prolonged negative rate, the lowest this year, underscores a prevailing bearish sentiment in the market. 
Onchain metrics for Solana reveal a decrease in activity, with Dune Analytics reporting a six-month low of $7.7 billion in weekly DEX volume.&nbsp; 
Earlier in the year, Solana frequently surpassed Ethereum in daily DEX volumes and achieved over $3 billion in 24-hour trading volumes. However, recent market trends have not been as favorable. 
Throughout 2024, Solana demonstrated a significant correlation with Bitcoin, which previously helped it outperform Bitcoin in the first quarter.&nbsp; 
Despite this correlation holding, the current market stance has led to larger drawdowns for Solana compared to Bitcoin. Bluntz_Capital, an independent trader, has suggested on social media that the SOL/BTC pairing appears poised for further declines, possibly testing lower support levels. 
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 <img decoding="async" width="882" height="442" src="https://www.cryptotimes.io/wp-content/uploads/2024/09/image-4.png" alt="Bluntz_Capital" class="wp-image-199207">
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 Source: <a href="https://x.com/Bluntz_Capital/status/1830397725831204911" target="_blank" rel="noreferrer noopener nofollow">Twitter</a>
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Currently, a critical support for Solana stands near $127. Should the price fall below this point, the next target would be $110, representing a key liquidity zone. A recovery from $110 could signal a potential rally, providing a much-needed reprieve for investors.&nbsp; 
However, if bearish trends persist into September, Solana could retest lower demand zones between $98 and $104, potentially leading to a reevaluation of its market position as the year progresses. 
This market behavior underscores a critical period for Solana, as it navigates through bearish pressures and tests key support levels, determining its trajectory for the remaining quarters of the year. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read:<a href="https://www.cryptotimes.io/2024/08/31/solana-drops-to-137-as-whales-unstake-fueling-market-volatility/" target="_blank" rel="noreferrer noopener"> Solana Drops to $137 as Whales Unstake, Fueling Market Volatility</a> 
</blockquote>

Will Solana’s Price Drop Below $100 in September?

The Crypto Times

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