Solana price has been experiencing a bear market as the volume in its decentralized exchanges (DEX) and futures open interest decreased.

Solana has risen for two consecutive weeks, gaining over 33% from its lowest point in August. However, it remains in a bear market after falling more than 30% from its year-to-date high.

Solana’s DEX Volume Declines

Solana’s price action has mirrored that of other cryptocurrencies like Bitcoin and Ethereum, which are also in a bear market. The sell-off in Solana has coincided with a decrease in volume on its DEX platforms. Data shows that Solana’s DEX volume dropped by over 45% in the past seven days, handling transactions worth $7.12 billion, compared to Ethereum’s $8.9 billion.

The decline in Solana’s DEX volume is attributed to the ongoing meme coin sell-off. Popular Solana meme coins like Dogwifhat, Bonk, Popcat, and Book of Meme have all tumbled by over 50% in recent months. Despite this, Solana remains the most popular chain for creating meme coins, thanks to its fast speeds and low transaction costs.

The launch of Pump.fun, a meme coin generator, has facilitated the creation of Solana meme tokens. These tokens have a combined market cap of over $425 million, with Michi, Daddy Tate, Mother Iggy, and Billy being the largest.

Solana’s Futures Open Interest Stagnates

Meanwhile, Solana’s open interest in the futures market has stalled. As of Aug. 18, futures open interest stood at almost $2 billion, the same level it has been for the past five days. This is significantly lower than the July 30 peak of $3.08 billion.

The waning open interest is likely due to significant liquidations earlier this month as cryptocurrencies slumped. Solana’s bulls suffered liquidations worth over $39 million, while shorts liquidations totaled $21 million on Aug. 8.

Technical Analysis Shows Bullish Signs

On the positive side, Solana has found strong support at the 50-weekly moving average, where it failed to move below earlier this month. Additionally, the coin has formed a doji pattern, characterized by a small body and long upper and lower shadows, which is a popular reversal sign in the market.

Solana has also formed a cup and handle pattern, indicating a potential bullish continuation. Therefore, the coin may continue its bullish trend in the coming weeks as buyers target the key resistance of $180.

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