Solana (SOL) Getting Shorted Heavily by Bears: Data
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Solana’s market landscape is looking increasingly bearish, and the numbers do not lie. Aggregated open interest is surging, clocking in at a staggering 11.7 million. Meanwhile, the aggregated trading volume is taking a nosedive, and liquidations have spiked to 3,300 contracts. What’s going on?
First, let’s talk about price. According to the most recent data, Solana is trading at $18.01. That is a far cry from its glory days, and it is not just retail investors who are feeling the heat. The DeFi landscape on Solana is also showing signs of strain, with liquidity and trading volumes dwindling.
Source: TradingView
Now, let’s delve into the elephant in the room: the looming FTX liquidation. As mentioned in previous U.Today articles, FTX has been granted permission to liquidate a significant chunk of its assets, including Solana. The exact timing remains shrouded in mystery, but the mere possibility is enough to send jitters through the market.
So, why the heavy shorting? Well, the aggregated open interest suggests that bears are piling in, betting that Solana’s price will continue to plummet. The sharp rise in liquidations indicates that many traders are getting caught on the wrong side of these bearish bets. It is a vicious cycle, and the upcoming FTX liquidation could be the catalyst that sends Solana spiraling further.
In summary, Solana is caught in a whirlpool of bearish sentiment, and the data points to further downside. Whether it is the increasing open interest, the falling trading volume or the spike in liquidations, all signs are pointing south. And let’s not forget the FTX liquidation wildcard, which could serve as the knockout punch.
Investors and traders alike should tread carefully. Solana’s current market dynamics are fraught with risk, and the bearish indicators are too glaring to ignore.
About the author
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.
The post Solana (SOL) Getting Shorted Heavily by Bears: Data appeared first on Crypto News Australia.
Filed under: Bitcoin - @ September 11, 2023 4:24 pm