Key Takeaways
Has Solana started recovering?
Price, volume, and Open Interest showed early bullish intent, but confirmation will depend on sustained accumulation.
Will the bulls be successful?
On-chain metrics look healthier, yet a full recovery could take time. 13th of October’s close may decide the next move.
On the 12th of October, CoinGlass data showed that the Solana [SOL] Spot Trading Volume was down 62% on Binance.
This figure began to climb higher, with a 10.2% rise in the past 24 hours, even as Solana rallied 10.59% in 24 hours. That rebound followed a sharp derivatives reset.
Liquidations crushed Open Interest
The Open Interest fell from $14.83 billion on the 10th of October to $9.81 billion on the 11th of October. This was a result of the massive liquidations during the price drop, and OI was at $10.28 at the time of writing.
Solana bulls had challenged the $200 mark a few hours before the time of writing.
Even if this psychological level is breached, the $200-$215 zone is a large obstacle in the way of bulls looking to establish a long-time uptrend.
Embers of hope for Solana
In a post on X, analyst Jelle pointed out that the altcoin market cap saw a huge wick due to the recent volatility, but the $1.05 trillion area has not been decisively lost. There is a chance it can be reclaimed, which would hint at an altcoin market recovery.
Glassnode’s Short-Term Holder NUPL metric fell near lows it last reached in June. By itself, it wasn’t a sign of a market bottom, but just highlighted the similarities of a deep market correction.
The balance of SOL on exchanges has been dropping since mid-July. This showed accumulation onchain. The Transaction Count had been falling since August, but has begun to trend upward once again.
Investors and traders must remain cautious despite the hopeful signs. Broader sentiment still hinges on Bitcoin.
Bitcoin [BTC] was approaching the $117k resistance at press time. A BTC rally beyond $120k and a SOL move past $215 would be signs of bullish strength, but until then, a “wait and watch” approach might be prudent.
