Key points:
sol(sol), Solana’s local cryptocurrency, faced a strong rejection of $158 on Monday. The subsequent decline to Wednesday’s $143 fell to a 14% loss in seven days. Now, traders are worried that the chances of recovering the $200 level have been reduced, as demand for leveraged ropeways has surged recently.
As of Wednesday, Open interest The sol term for Sol Futures is 45.7 million, up 19% from last month. While each long (buyer) matches the short (seller), the leverage intensity of both parties may vary. These excellent positions are now worth $6.7 billion, which is crucial to assessing which side is more aggressive.
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Funding rate Regarding permanent futures, this is a key indicator for understanding market sentiment. Under neutral conditions, the annual funding rate should be reduced by 5% to 15%, indicating that long positions are paying a premium to keep transactions open. When the market becomes bearish, this rate tends to drop below that range.
On Wednesday, Saul’s funding rate dropped to 0%, indicating a growing demand for bearish positions. More importantly, the indicator has failed to maintain an annual threshold of more than 15% over the past three months, reflecting greater confidence among the bulls. Even the mid-May rally to $185 will not spark new interest in leverage life.
While SOL’s regaining $200 leverage is not a strictly required leverage desire, significant changes in investors’ perceptions are crucial. Without new confidence, the market may continue to face sales pressure. SOL’s performance is closely related to Solana’s network activity, which has been stagnant for three months after a record-breaking January.
Total value locked on Solana’s network (TVL) has been holding nearly $10 billion, while weekly revenue from decentralized applications (DAPPS) has fallen by $40 million. For comparison, these DAPPs generate more than $100 million per week between mid-November and mid-February.
Sol’s recent decline also reflects the exaggerated excitement inspired by adult activity, especially after the launch Trump’s official ((trump card) symbol on solana. This caught traders off guard because of the company’s previous efforts to align with U.S. President Donald Trump To a large extent, it is favored by Ethereum.
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this Potential approval The SOL Spot Exchange Traded Fund (ETF) of the U.S. Securities and Exchange Commission is regarded as the most important short-term catalyst for tokens. According to Cantor Fitzgerald Equities Research, analysts still believe that SOL will benefit from long-term growth on the Solana blockchain. Report.
Analysts reportedly asserted that Solana “is much better than Ethereum in every metric” and expects more and more companies to adopt SOL as a fiscal asset. They noted strong developer growth and higher operational efficiency compared to Ethereum’s more complex Tier 2 ecosystem.
Although $200 of Sol Pragital may be based on Derivative datagrowing institutional interests and blockchain adoption can quickly reverse the current market sentiment.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
