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According to market research platform Kaiko, Solana (SOL) has become one of the altcoins with high liquidity on Coinbase. Having high liquidity sometimes provides price stability and less volatility.
Current Situation of Solana Price
The high liquidity of SOL, as measured by Kaiko, is an indicator of a healthy market on its own. According to Kaiko, the increase in liquidity allowed Solana (SOL) to surpass Ripple (XRP), Dogecoin (DOGE), and Polygon (MATIC) according to SOL’s metric.
It may not be surprising that SOL outperforms most assets in the market in terms of liquidity. However, behind this extraordinary success, SOL faced its fair share of challenges due to the recent price decline.
According to CoinMarketCap data, SOL lost 4.22% of its value in the last seven days. According to the four-hour SOL/USD chart, the altcoin formed a bearish market structure. SOL tried to find support at $23.96 as of August 15th. However, unfortunately, there was very little or no buying pressure to reduce the increasing sales. This pushed the support down to $22.90.
While SOL slightly surpassed the $22 level, volatility reached a high level as indicated by the Bollinger Bands. The lower band of the BB also showed that the altcoin was oversold by touching its price previously.
Despite a slight reversal in the trend, the Moving Average Convergence Divergence (MACD) indicated that the momentum remained largely under control of the decline. Negative MACD values indicate that the 12-day EMA is below the 26-day EMA. As of the time of writing, the MACD value was -0.13. Unless the demand for SOL outweighs the selling pressure, the altcoin price could drop as low as $20.
Solana Long/Short Position
Despite the downward trend of SOL, according to Santiment’s data, the funding rate was positive. Typically, a negative funding rate means that short positions surpass long positions. However, a positive SOL funding rate may indicate that the average sentiment towards SOL is bullish.
Similar to the funding rate, the weighted sentiment was also in the positive zone. Weighted sentiment takes into account the unique social volume surrounding an asset’s opinions. When the metric is positive, it means that the average sentiment towards an asset is optimistic. Conversely, a negative weighted sentiment indicates the opposite, and it supported SOL’s initial condition.
Meanwhile, information from derivative monitoring portal Coinglass showed that approximately 3.90 million SOL positions were liquidated in the last 24 hours. Furthermore, long positions accounted for $2.94 million of the liquidated positions. On the other hand, the liquidated short positions were worth $952,670.
