Solana Funding Rates Hit 17-Day Negative Streak — | Crypto News
Solana (SOL) has been considerably affected by the bear market, reporting a price loss of 37.38% in the last 30 days alone. Despite the late price reduction seen last week, the altcoin stays about 70% off its all-time high, reflecting the dominant promoting exercise of latest months. Notably, funding charges data recommend merchants are yet to see an imminent end to this turmoil, as open curiosity positioning displays strong conviction toward additional draw back.
Solana Bearish Funding Stretch Sets New Low In 2.5 Years
Funding charges are periodic funds exchanged between merchants in perpetual futures markets to keep the futures price aligned with the spot price of an asset. Funding charges show which aspect of the market is more crowded, patrons (longs) or sellers (shorts), and thus a good sentiment indicator.
Negative funding charges recommend that short merchants are dominant, with a increased share of market individuals presently betting on a price fall. According to market analyst Ted Pillows, the Solana market has recorded a damaging funding price for 17 consecutive days, indicating that merchants have been aggressively positioned on SOL for over two weeks.
The market analyst explains that the bearish sentiment around Solana hasn’t touched these extremes in over 2.5 years. Therefore, this development is indicative of a sustained directional conviction and not common market noise. However, there are two doubtless eventualities to develop from this regarding state of affairs. Firstly, Solana might continue to bleed downward as spot shopping for strain stays weak, mixed with the sustained decline in macro risk urge for food.
On the other hand, the market may also expertise a short squeeze marked by speedy upward price motion. This might be due to an exhaustion of promoting strain, after an overwhelming market majority opens short positions. In conclusion, while Solana merchants and buyers stay strongly bearish, there’s still potential for reverse price strikes to catch these overcrowded trades off guard.
Solana Price Outlook
At the time of writing, Solana trades at $88.01, reflecting a 3.81% gain in the last day. Meanwhile, the daily trading quantity is down by 24.9% and valued at $2.89 billion.
According to a famend market analyst, Ali Martinez, data from the UTXO Realized Price Distribution (URPD) metric highlights key Solana price ranges. While $85.55 was beforehand recognized as a resistance zone, Solana’s transfer toward the $88 stage suggests this area might now be flipping into a assist space, reinforcing its significance as a short-term demand zone.
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