Solana has been on its knees after the FTX fall, which brought the price down by over 60% in just 10 days. Solana bulls have tried to offer occasional respite to price action, but all in vain so far as it trades 94.72% below its all-time high.
At the time of writing, SOL price traded at $13.71, a 1.47% rise on the daily window. However, short-term gains don’t seem to be tempting any takers, as trade volumes slumped by 23.57% to $168.57 million on Dec. 8.
While the Solana spot price action was global market dependent, a look at its on-chain metrics provided better insights into the coin’s short-term trajectory
Solana in Despair
The Solana market cap dominance saw a major pullback on Oct. 31. The fall in market cap dominance brought Solana to the Aug. 2021 levels before the price rally.
Notably, prices slumped below the Aug. 2021 levels, but market cap dominance maintained the same.
Looking at the values of open interest and funding rates helps understand the market’s direction and whether the price trend would change. Open interest for Solana saw a rise of over 3%, standing at $196.4 million.
While the open interest rate rose, the funding rate was still negative, which meant that short-position traders were dominant and were willing to pay long traders – a bearish trend.
The futures market data suggested a prolonged recovery and lack of euphoria for SOL as bears dominated bulls.
Solana NFT Landscape
Despite the larger bearish price structure, the Solana non-fungible token (NFT) space shone. The total NFT trade counts spiked to a three-week high on Dec. 6. Along with that, the total NFT trade volumes also noted an uptick on the same day.
However, the trade volumes for SOL still offered no rise, demonstrating retailers’ lack of interest. The total weighted sentiment around SOL was still negative, which meant that demand for the coin was also relatively low.
For SOL price, establishing above the $14.40 mark and then the $15 psychological resistance could make play an important role in confirming recovery. If the bearish price action continues, the price could dip to the lower $10 mark again.
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