- Solana price has lost momentum in the past few sessions.
- Open interest in the futures market has been in a downward trend.
- Solana’s DeFi TVL has been rising in SOL terms.
Solana price drifted downwards on Thursday as cryptocurrencies lost momentum. SOL token dropped to $21.46, a few points below this week’s high of $22. It remains about 10.1% above the lowest level on Friday last week. Other top cryptocurrencies like ThorChain, Monero, Curve DAO, and Chainlink also pulled back.
Solana DeFi TVL is recovering
Solana price has struggled lately amid rising concerns about the crypto industry and the overall demand. This decline has coincided with that of Bitcoin, the biggest coin in the world, which moved below $26,000 on Thursday.
Despite the decline, there are signs that Solana’s DeFi TVL is doing better than expected. According to DeFi Llama, Solana has a TVL of 51.6 million SOL in its ecosystem, higher than the year-to-date low of 26 million. At its peak, Solana had a TVL of more than 110 million SOL.
The dollar figure of Solana’s TVL is over $1.09 billion. While this is an important figure, it is impacted by the price of the Solana coin. Additional data shows that the stablecoin market cap in Solana stands at over $1.52 billion while the revenue in the past 24 hours was over $21 million. This is a sign that Solana’s ecosystem is doing better than estimates.
The biggest players in Solana are SPL Governance, Streamflow, Marinade Finance, Solend, and Lido.
Meanwhile, the exchange SOL futures open interest has dropped in the past few days. Data by CoinGlass shows that the open interest on Thursday stood at over $221 million, with most of them being in Binance, Bybit, and Bitget. This open interest is substantially lower than the July high of $420 million.
Open interest is an important figure in the crypto market because it shows the positioning among investors.
Solana price prediction
The 4H chart shows that the SOL crypto price has been under pressure in the past few months after it peaked at $32.35 in July. It has consistently moved below the important support level at $25. Most recently, Solana price flipped the important support level at $22.36, the lowest level on August 7th.
Solana has moved below the 50-day and 25-day moving averages and the descending trendline shown in green. Therefore, the outlook for the token is bearish, with the next support level to watch being last week’s low at $19.30.
