Solana shakes off early week decline with these moves

• Solana commences recovery after a weak start to the week.
• SOL traders remain cautious as the price is yet to stabilize. 

Solana [SOL] experienced a series of declines at the end of the past week, and this downward trend extended into the beginning of the current week. However, efforts appear to have been made to initiate a recovery during this week.

The question is, to what extent did these recovery attempts succeed?

Solana’s recovery quest

A review of the Solana price trend showed a significant drop at the beginning of the week on 22nd January, with a nearly 8% decrease.

This decline marked the culmination of successive drops that SOL had been experiencing since 18th January, when it faced a roughly 7.5% decrease.

Following the almost 8% drop on 22nd January, it made efforts to initiate a recovery.

Source: Trading View

The chart showed that Solana has had more uptrends in recent days, reaching its highest point on 26th January. By the end of trading on 26th January, Solana had increased by over 6%, trading above $92.

However, at the time of this writing, the uptrend has paused, with a slight decline observed, and SOL was trading at around $91.8.

Additionally, the recent days of uptrends have positively impacted Solana’s Relative Strength Index (RSI), positioning it on the neutral line as of the current analysis. This suggests that the bear trend is weakening as the price undergoes a recovery.

Traders still holding their cards close

An examination of the Solana funding rate on Coinglass indicates a lack of significant movement in the past few days.

Noteworthy, however, is that the funding rate has consistently remained positive. This implies that buyers continue to dominate, although with a less aggressive stance. As of the present analysis, the funding rate was around 0.01.

Additionally, a review of the Open Interest reveals a similar lack of substantial movement. At the time of this writing, the Open Interest is recorded at around $1.2 billion, suggesting a relatively stable situation in this aspect of the market.

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Solana holding it down on the NFT front

The Solana network and its token have garnered attention, particularly due to their performance in the NFT space. An examination of NFT sales volume data on Crypto Slam showed that, in the last 24 hours, Solana secured the third-highest NFT sales volume.

At the time of this writing, its sales volume was over 6 million. Further analysis over the past seven days also positions Solana at the third-highest volume, reaching almost $52 million.