Solana's trading activity has recently faced a decline, moving towards the lower line of its rising channel since the beginning of the month. The downward trend commenced on May 20, marking a shift in the altcoin's value trajectory within the rising channel. Initially priced at $129 on April 30, Solana's value surged to $184 before a wave of selling activities took effect. Currently, the cryptocurrency is on the verge of dropping under the 20-day exponential moving average, a pivotal indicator of short-term market trends. Should Solana breach this moving average, it may suggest a shift from a bullish to a bearish market sentiment.

The drop in open positions in the futures market since May 20, reaching $2.44 billion, reflects a 4% decrease over the past week. This decline in open futures positions indicates a potential retraction of market participants from existing trading positions. Despite this, the positive funding rate on major cryptocurrency exchanges is encouraging futures investors to maintain long positions in Solana, potentially exerting upward pressure on its price.

Experts anticipate a further decline in Solana's price if it breaks the $163 support level, potentially reaching $157.99. However, the ongoing long positions by futures investors due to favorable funding rates may propel the asset's value towards $172.41.

This analysis outlines the critical shifts in Solana's trading dynamics, encompassing market trends, potential price movements, and the influence of futures trading on its value evolution.