Solana’s Open Interest Declines by 21% as Price Hits 30-Day Low
Solana, one of the top cryptocurrencies in the market, has seen a sharp decline in open interest by 21% along with an 11% drop in price, hitting its lowest point in over a month. This significant downturn has wiped out approximately $36.55 million in long positions as traders grapple with increasing uncertainties.
According to reports from Cointelegraph, Solana’s open interest has plummeted by 21% in the last 24 hours, reflecting a broader decline in the cryptocurrency market. Despite the challenging market conditions, traders are viewing this as a potential opportunity for investment.
CoinGlass data reveals that Solana’s open interest stood at $1.62 billion on April 14, marking a substantial decrease from the previous day. The current price of Solana (SOL) is $136.54, down 11% in the last day, as per CoinMarketCap statistics.
The sudden drop in Solana’s price has led to the elimination of $36.55 million in long bets, disappointing those who were anticipating a price surge ahead of Bitcoin’s halving on April 20. Other top cryptocurrencies have also experienced similar losses, with XRP, Dogecoin, and Cardano seeing significant drops in value.
Despite the market-wide decline, traders remain hopeful about the future of altcoins. Notable trader GCR Classic broke their silence on social media, advising followers to consider scaling into high conviction tokens during this period of market volatility.
However, conflicting predictions have emerged within the crypto community. While some, like crypto entrepreneur Kyle Chasse, anticipate a significant increase in altcoin prices, on-chain analytical firm Glassnode warns that historical data suggests otherwise. The firm highlights the harsher drawdowns experienced during previous market euphoria phases, casting doubt on the optimistic forecasts.
Adding to the uncertainty is Solana’s recent network troubles, with reports of congestion causing delays in project launches. Developers are working on a patch to address these issues by April 15, but users have already faced increased network congestion and transaction failures in recent weeks.
As the cryptocurrency market navigates through these challenges, traders are closely monitoring the situation and looking for opportunities amidst the general slump. The future of Solana and other altcoins remains uncertain, but market participants are keeping a close eye on developments to make informed decisions in this volatile environment.
