The post Solana DEX Volume Plummets: Is SOL Facing a Bearish Trend? appeared on BitcoinEthereumNews.com.

Solana’s DEX trading volume fell to $984 million from over $1.5 billion due to reduced memecoin trading. SOL dropped to $161.49 from a peak of nearly $190, with open interest also declining. The daily trading volume on decentralized exchanges (DEX) on the Solana blockchain has experienced a notable decline. On May 26, data from Artemis’ dashboard indicated that the volume had fallen to $984 million. This is a significant drop from the volume three days prior, which exceeded $1.5 billion. This decrease contrasts sharply with Solana’s performance in April, when the DEX volume reached a monthly record high of $60 billion. The recent decline in trading volume can be attributed to reduced interaction with memecoins launched on the Solana network. Previously, a surge in memecoin trading had driven the volume to unprecedented levels. However, as the memecoin frenzy subsides, so does the trading volume on Solana’s decentralized exchanges. Weakening Open Interest Signals Potential Downtrend Another critical indicator pointing to Solana’s potential downturn is the Open Interest (OI) on the network. According to Santiment data, Solana’s OI has dropped to $1.90 billion from nearly $2.20 billion on May 20. Open Interest measures the total value of all open positions in a contract. An increase in OI typically signals a bullish trend as more capital flows into the market. Conversely, a decrease suggests that liquidity is being withdrawn, indicating a bearish trend. The drop in Solana’s OI suggests a weakening market sentiment. As liquidity exits SOL contracts, the potential for an uptrend diminishes. This reduction in OI has correlated with a decline in SOL’s price, which previously rallied to $188.45 when OI was higher. If the current trend continues, SOL could face further declines, potentially reaching $145.90. Bullish Predictions and Strong Market Performance Crypto analyst Trader Tardigrade has made bold predictions regarding…

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Filed under: News - @ May 27, 2024 5:20 pm