From August 8th to August 10th, SOL’s open interest saw a modest decline from $2.25 billion to $2.20 billion. This 2.2% decrease in open interest is significantly less than the 7% decline in SOL’s price during the same period.
During a market correction phase, when Open Interest declines slower than the price dip, as observed in the SOL/USD derivatives markets this week, it signals majority of traders consider the recent 7% pullback to be a temporary correction rather than the start of a prolonged downtrend.
As Solana Open Interest continues to hold above $2 billion, it hints that traders are currently opting to pay increased Funding Rates to keep their positions open rather than close them out in panic.
Alternatively, it could suggest a bear trap, where the market lures in short-sellers before a potential reversal. SOL open interest staying above $2 billion, despite the 7% price correction, indicates that LONG traders are leaning towards a consolidation around the $150 level as markets await the next major catalyst.
SOL Price Forecast: Dominant Bulls Eyeing $160 Breakout
Solana’s (SOL) price action suggests that bulls remain in control despite recent volatility. The price is currently hovering around $153, close to key support provided by the 20-day Simple Moving Average (SMA) at $163.98. This level could serve as a springboard for a potential breakout.
The recent pullback towards the lower Bollinger Band at $130.04 appears to have been a temporary correction, with SOL bouncing back swiftly. The next significant resistance level is at $160, a psychological barrier that, if broken, could open the door for a move towards the $170-$180 range.
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