The post Rising Interest in Solana Futures Reflects Traders’ Mixed Sentiment Ahead of Possible $200 Rally and ETF Approval appeared on BitcoinEthereumNews.com.

Recent trends in Solana (SOL) reveal increased leverage use amidst uncertainties over trader sentiment, highlighting key market dynamics. Key points: Solana’s resilience at the $140 support level indicates a shift in trader confidence as bullish trends struggle to gain momentum. Open interest in SOL futures surged to $5.75 billion, showcasing robust institutional involvement in the cryptocurrency. As decentralized exchange (DEX) activity rises, SOL’s potential to rally to $200 is bolstered by upcoming regulatory developments. Despite a recent drop of 4% from April 29 to April 30 following a failed attempt to hold the $150 price point, traders showed renewed confidence as Solana maintained the $140 support level for an entire week, a first in over two months. As leverage positions on SOL approached record highs on April 30, market sentiment began to lean towards speculation of a rally exceeding the $200 threshold. Solana futures aggregate open interest, SOL. Source: CoinGlass The total open interest for SOL futures reached 40.5 million SOL on April 30, indicating a 5% month-over-month increase and nearing its all-time high. In terms of dollar value, this amounts to $5.75 billion in futures positions, ranking SOL third in the cryptocurrency market and over 50% higher than XRP derivatives. This indicates a significant appetite for SOL derivatives among institutional investors. Data shows increased demand for bearish leveraged SOL positions While heightened demand for SOL futures typically suggests increasing optimism, the relationship between long and short positions means that rising open interest doesn’t equate to a bullish outlook. Analyzing the funding rate for perpetual contracts provides a clearer view of trader sentiment regarding SOL futures. ETH perpetual futures 8-hour funding rate. Source: Laevitas.ch Currently, SOL futures exhibit a negative funding rate, indicating a preference for bearish positions among traders. Following a failed attempt to surpass $156 on April 25,…

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Filed under: News - @ May 1, 2025 4:21 am