Solana drops open interest to $440 million as price declines 11%
Solana's open interest (OI) and price have fallen over the past 24 hours, reflecting a broader decline in the cryptocurrency market. However, traders are becoming less optimistic, seeing it as a “good opportunity”.
On April 14, OI in Solana (SOL) stood at $1.62 billion, down roughly 21% from the previous day, according to CoinGlass data. OI measures the total value of all outstanding or unsettled Solana futures contracts on exchanges.
At the time of publication, Solana's price is $136.54, down 11% in the last 24 hours, according to CoinMarketCap data.
Solana's sudden drop in price wiped out about $36.55 million worth of traders' long positions, potentially discouraging those hoping for a price hike until the April 20 halving of Bitcoin.
The rest of the top 10 cryptocurrencies saw similar declines, with XRP (XRP) posting a steep decline of 12.12% over the past 24 hours. Dogecoin (DOGE) followed closely with a 10.86% decline, while Cardano's (ADA) retreated slightly at 10.20%.
Traders have a fairly positive outlook for the overall altcoin market, although it is uncertain how long this decline will last.
The drop in prices in the market has prompted popular trader GCR Classic to break their silence on X for more than a year, advising his 273,500 followers on April 14 that the current season offers “a good opportunity to add to high-profile tokens.”
Meanwhile, in an April 13 X post, crypto entrepreneur Kyle Chase told followers that “altcoins will probably see up to 20-30% Monday.”
Although on-chain analytics firm Glassnode suggests that may not be the case. It highlighted the worst of Bitcoin's fall in previous levels of “euphoria,” which many traders use as an indicator for the rest of the market.
In an April 12 post on X, he explained that inflation was often above 25 percent during previous euphoria. However, in the current market, there have only been two declines of nearly 10% since hitting an all-time high on March 5.
Related: Solana memecoin debacle raises questions about crypto utility, reputation
This comes amid several network issues with Solana in recent times.
On April 9, Cointelegraph reported that congestion on the Solana blockchain has forced several crypto projects to postpone their launches. Solana developers said they were working on a fix until April 15th.
Users of the Solana blockchain have reported increasing issues around network congestion and transaction errors over the past several weeks. New projects, especially those with token launch plans, decided to stop until technical problems were resolved.
Magazine: Altseason on the Horizon, SEC Targets Uniswap, and BTC Half News: Hodler Digest, April 7-13
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
