SOL price is expected to move in that direction over the next 24 hours

Volatility is inherent in the crypto space. Over the years, tokens have seen many unusual price movements in a short period of time. While some market participants may make a profit, most others choose to be careful and stay away during such times. Currently, the price of SOL among the top 10 cryptocurrencies has fluctuated the most in the past 7 days.

At the time of going to press, the fifth largest coin for the week is down more than 15%. Other coins in the same top 10 list only rose or fell by no more than 6% over the same period.

Measure current trends

On the 1 hour chart, the price is locked in a descending channel. In the early hours of the 7th day it briefly broke the lower trend line, but then slid back up just as quickly.

SOL has been moving sideways for the past few hours.

SOL / USDT | Source: TradingView

Careful at the top

To see in which direction SOL will go in the near future, we analyze the general sentiment of traders on the futures market.

If you look at the graphic below, the Open Interest (OI) has shrunk since mid-November, from the high of 1.91 billion US dollars in the above-mentioned period it is now around 800 million US dollars.

Declining open interest essentially means that existing traders are gradually closing open positions and new traders are not interested in entering the market.

Since not much new money is flowing into the ecosystem, it will be a challenge for SOL to break out of this monotonous phase of reduction and change course.

The source: CoinGlass

However, funding rates on most of the major exchanges have returned to positive territory. Only at OKEx is the rate slightly negative (-0.003922). Most of the curves in the stock market flip around showing that long traders need more leverage than short traders.

However, the current positive level is not high, which indicates uncertainty in the minds of leverages users.

The source: CoinGlass

In addition, the liquidation table is not at an alarming level either. The total value of long and short liquidations over the past 12 hours is only $ 234,500 at press time. Hence, with such a small amount of liquidation, there is not much to say about which side the market is currently favoring.

As a matter of fact, long: short ratio still show obvious trends. The number of bets for both sides is not much different.

The source: CoinGlass

In summary, the above trends show that traders are quite cautious right now. Therefore, at this point it is expected that the price of SOL will not change significantly in the next trading sessions unless the broader market rises or falls. Market participants can expect SOL to remain unchanged on the price chart for the next day.

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