Advertisement
AD

Main navigation

Solana (SOL) Getting Shorted Heavily by Bears: Data

Advertisement
Mon, 11/09/2023 - 10:27
Solana (SOL) Getting Shorted Heavily by Bears: Data
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

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?

Advertisement

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.

Article image
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.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD