Solana (SOL) Faces Market Challenges

Solana (SOL) has shed over $40 billion in cryptocurrency over the past week. Amid this bearish trend, traders are acting to lower liquidation risks on their investments. Despite this volatility impacting investors, there are signs of activity in the market.

SOL’s Recent Performance

According to CoinMarketCap data, $5.18 billion worth of Solana has been traded as traders remain hopeful of price recovery. SOL has experienced a decline of 4.35% in the last 24 hours, trading at $137.17, with market capitalization dropping 2.90% to $70.24 billion.

Despite these bearish signals, investor optimism remains strong. Trading volume increased by 10.25%, indicating active engagement among market participants. Analysts note that SOL is testing a support level of $136, suggesting potential overselling, which could lead to recovery soon. Previous patterns indicate a possible rally by late March or early April.

Future Prospects for Solana

Solana’s growth has decreased by approximately 88%, impacting its ecosystem, particularly with a drop in new addresses. However, stakeholders are hopeful that SOL’s inclusion in the U.S. Strategic Crypto Reserve list will attract more users. Additionally, the planned launch of SOL futures by CME Group may enhance Solana’s long-term market prospects and aid in the approval of a spot Solana exchange-traded fund (ETF) in the U.S.