Solana has been down for a while; the SOL token plummeted to $154.12, shedding 3.40% in the last 24 hours. This continued a more extensive downtrend of losses over the previous week, amounting to 4%, which comes amid a general market chop.

On the other hand, meanwhile, the total daily trading volume of Solana shows growth of around 59.98%, estimated at approximately $2.4 billion. It signifies the activity of traders very heavily in this market, probably seeking to gain from price volatility. On the other hand, market capitalization has fallen by 3.37% to stand at approximately $71 billion, which pushes Solana to one of the five largest cryptocurrencies in the world.

Price Losses Below $160 After a Bearish Run of SOL

Solana has witnessed highly volatile price action today. It has been oscillating between the limits of $158.78 and $163.62 over the past 24 hours. It hints that SOL is battling it at very critical support and resistance. Perhaps it is such a massive trading volume that it can be pointed out to some investors reacting to price or maybe even strategic buy and sell orders.

Solana is trading just around the critical area. The 20-day Exponential Moving Average (EMA) area around $163.5 continues to pose strong resistance. Lower down, the index of Stochastic RSI is in the shallow zone at 12.72, depicting that SOL is possibly in the oversold area and could have an upward correction if sentiment from the investors changed

On Chain Metrics and Investor Sentiment

The on-chain metrics reflect a truly dynamic change in the Solana ecosystem. For instance, active addresses have spiked by 57.41%, from 1.08 million to 1.7 million between May and June. Such a metric could be used to point toward an increase in interest and activity on the Solana network, perhaps making up the base for a future price action.

There is still an air of bearish sentiment in the prices, though the increasing on-chain activity and trading volume would suggest that the interest in Solana remains strong. The market is already at a point at which it can turn towards the recovery phase, especially if it manages to break over the $162 EMA resistance successfully. For a bullish reversal signal in the trajectory of the Solana market, investors and traders need to be on the watch for a build-up of buy pressure. The newly realized on-chain activity and rising trading volumes indicate continued interest in SOL, even with the recent price downturn.