Trading volume cools down, Solana enters a critical observation period.

Solana (SOL) has recently seen a significant cooling in on-chain trading activity. According to the latest observations from on-chain data analysis platform CryptoQuant, both the Spot and derivatives markets are experiencing a trend of declining trading volume. Although this phenomenon may be viewed as a sign of weakness by the market in the short term, from the perspective of long-term investors, it could instead be the calm before the storm.

CryptoQuant uses bubble charts to visually analyze trading activities, and the results show: the Spot market of Solana is predominantly represented by green bubbles, indicating a decrease in overall trading volume; while the futures market is displayed in gray, meaning little change, tending towards neutrality.

(Source: cryptoquant_com)

Potential Catalysts in Market Silence: Solana ETF

Despite the decline in trading volume, the market is quietly brewing a potential turning point, and the likelihood of a Solana ETF launch is rapidly increasing. According to Bloomberg senior ETF analyst Eric Balchunas, Solana is very likely to become the first altcoin to receive approval for a U.S. Spot ETF. In a tweet, he pointed out: “Get ready for altcoin ETF summer, Solana is expected to lead the way, and we predict its chances of passing the Spot ETF approval are as high as 90%.” This statement is undoubtedly a shot in the arm for Solana, which is seeking a breakthrough in the market.

The price breakout conditions are taking shape.

Before the deadline, the price of Solana was around $145, suppressed below the resistance range of $158 - $165. However, the overall trend remains in a positive range and continues to attempt to stabilize above the key short-term moving averages.

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Summary

Although the on-chain activity of Solana is currently somewhat sluggish, this is not necessarily a bearish signal. As the news of potential Spot ETF approvals continues to develop, market sentiment is gradually warming up. If it successfully breaks through the resistance area on the technical front, the next wave of Solana’s market movement may be more intense than expected. Investors should keep an eye on the progress of the ETF and changes in market sentiment, as the current calm may just be a prelude to the next explosion.