Technical analysis by FtradeFXArabic about Symbol SOL: Buy recommendation (3/10/2025)

.Dramatic Volume Decrease: Trading volume has plummeted from $1.99 billion in November to just $14.57 million by March 2025, representing a staggering 99% decrease . This substantial reduction in volume suggests weakening market participation and could make it challenging to sustain a rally towards the $146 target.Recent Volume Collapse: A more recent 61% drop in trading volume has been observed, bringing the volume down to $130 million . This sharp decline indicates weak buying pressure, which could hinder the price movement towards the $146 target.Trading Volume PatternsAnalyzing trading volume patterns provides insights into market dynamics:DEX Volume Milestone: Solana-based decentralized exchanges (DEXs) achieved approximately $3.8 billion in 24-hour trading volume on January 6, 2025, surpassing Ethereum and Base combined . This milestone highlights the growing dominance and liquidity of Solana's DEXs, particularly Raydium, which could support increased trading activity.Derivatives Market Activity: Trading volume in Solana's derivatives market has dropped by 28.06%, while open interest has increased slightly by 0.81% . This mixed signal in the derivatives market indicates cautious sentiment among traders, which could impact the path to $146.Volume-Price Divergence: The significant decrease in trading volume coupled with price fluctuations suggests a potential divergence. This divergence could indicate that the current price levels may not be supported by strong buying pressure, making the $146 target more challenging to achieve without a substantial increase in volume.