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Solana (SOL) is one of the tokens with the most erratic growth curves in the digital currency ecosystem. At the moment, Solana’s price has backpedaled, dropping 1.92% to $165.94, a price that is well below the 24-hour high of $180.17 printed earlier.
It remains uncommon to find such price swings on the market, and while there is an obvious bearish takeover, the Solana Open Interest (OI) data paints a different picture. The OI, per data from Coinalyze, comes in at $2 billion, up by 2.37% in the past 24 hours. With large OI, it becomes evident that the market as seen from the derivatives standpoint is bullish on SOL.
Arman ShirinyanThis bullish twist is important for the digital currency as Bloomberg reported earlier that the sale of Solana by the FTX Estate has come to an end. This is a pivotal update whose significance hinges on the extensive selling pressure placed on the coin by the bankrupt firm.
After the collapse of FTX, the exchange explored enough avenues through which it could free up funds to repay its creditors and users. As one of the largest holders of Solana and other altcoins, the firm got the approval to auction out these tokens. Firms like Pantera have been the major beneficiary of these scheduled auctions.
With sell-off fears set aside, market analysts believe Solana can now be allowed to face pricing based on natural demand and supply forces. This is likely to provide an intense upside to the coin as it is considered by many as undervalued.
Gamza KhanzadaevOver the past few months, Solana has changed its own fortune by tackling its network congestion issues with a fix deployment on the mainnet. In addition to the bullish Open Interest data, Solana has the fundamental backing - anchored in ETF projections - that supports its retest of $200 in the midterm.
Arman Shirinyan
Alex Dovbnya
Dan Burgin