Solana price climbs 14% in 30 days as volume decline sparks concern
Solana’s trading volume dropped noticeably between September and October.
Solana's price is up by +14% over the last 30 days. Nevertheless, several indicators demand to be closely watched for any potential shifts in the altcoin's bullish momentum.
EMA signals point to strength
First is Solana’s Exponential Moving Average (EMA), which is keeping SOL in a bullish framework. The 50-day SMA crossing above the 200-day SMA on Solana’s daily chart has completed a “golden cross,” an important technical signal that typically signals extended upward momentum. Historically, this setup has been a strong indicator of further gains. Solana's last golden cross around this same period of last year triggered an impressive 895% rally. But as always, past performance isn’t a guarantee.
BBTrend shows momentum but with a caveat
Next in line is the BBTrend, an indicator that measures price strength relative to Bollinger Bands. Right now, Solana’s BBTrend stands at a positive 4.73, keeping the upward pressure alive.
This value, while not as high as the BBTrend peaks of 8 to 9 observed around mid-October, still supports a bullish outlook. The recent dip into negative territory on October 29 is a minor blip, but as it currently stands, buyers seem poised to keep things moving up.
Volume, a potential red flag
However, volume tells another part of the story. Solana’s trading volume dropped noticeably between September and October, suggesting that demand might be cooling. Historical data from last year hints at a potential risk here. Back then, rising volume supported a strong rally from September through early 2024. In contrast, the current volume decline could point to tapering demand, especially if prices near resistance levels like $183 and struggle to push past.
Some analysts have even hinted at a possible crash, with a projection that Solana might slip to the $50 range if volume fails to pick up significantly. While such a drop is unlikely with the current bullish metrics, any continued volume weakness could eventually trigger a shift in sentiment.
The focus for Solana remains on a few key areas: keeping price action above $183, maintaining positive BBTrend momentum, and ideally seeing volume strengthen.
Solana’s ecosystem just marked another high. Thanks to the rising popularity of niche tokens and Chainlink integration.
