Solana’s derivatives market has seen both buyers and sellers facing losses, indicating potential exhaustion in the market. Despite this, recent activities suggest a bullish outlook for Solana, with the possibility of a positive move in the near future. SOL experienced a 14.56% increase in the past week and a 6.50% rise over the month, with indicators still favoring buyers for a potential upward swing.
In the derivatives market, both long and short positions in Solana saw equal losses of $6.5 million each in liquidations over the last 24 hours, signaling trader indecision. However, AMBCrypto’s analysis suggests that bulls still have a slight edge, with the potential for the price to break in their favor if momentum continues. The market tends to teeter when liquidations are evenly matched, leading to muted price action until a decisive move is made.
On-chain activity for Solana has strengthened the bullish narrative, with Unique Active Addresses increasing by 31% within 24 hours to reach 5.4 million. This spike indicates fresh buying or receiving of SOL tokens, intensifying positive expectations. Furthermore, decentralized exchanges have seen a 15.35% rise in trading volume, making Solana the chain with the highest DEX trading volume. The Futures market also shows optimism, with growing unsettled contracts and buying volume in derivatives.
Open Interest in the derivatives market continues to rise, indicating increasing investor interest in Solana. The Long-to-Short Ratio stands at 1.0087, suggesting more buying volume and a potential price rally. Investor confidence has grown with a $72 million increase in liquidity flowing into Solana in the last 24 hours, bringing the total value locked to $7.144 billion. A rising TVL reflects long-term commitment from investors, potentially leading to further bullish momentum for SOL.
In conclusion, despite the recent losses in Solana’s derivatives market, the overall sentiment remains bullish with various indicators pointing towards a potential positive move in the near future. The market teeters on indecision, but the growing activity on-chain, increasing trading volume on DEXes, and rising Open Interest all suggest a favoring towards the bulls. With investor confidence on the rise and a significant increase in liquidity flowing into Solana, the stage is set for a potential price rally in the coming days.
