HomeUncategorizedSolana (SOL) price rally could fizzle out due to weak fundamentals By Cointelegraph

Solana (SOL) price rally could fizzle out due to weak fundamentals By Cointelegraph

January 24, 2023

[ad_1]


Solana’s (SOL) recent 250% rally to $25 has shocked many investors in the crypto market. At the same time, traders who had eyes on the negative funding rate for SOL in the futures market could have anticipated the bullish move ahead of others.

It’s because excessive negative funding rates, like the one in Solana displayed below, implies that the majority of traders are on the short side, providing an opportunity for buyers to run their stops.

SOL funding rate for perpetual swaps. Source: Coinglass
Share of NFT trading volume by blockchains from Dec. 4 to Jan. 4. Source: Delphi Digital
NFT traders per week on Polygon (left) and Solana (right). Source: Nansen
Total gas spent on Solana. Source: token terminal
Total locked value in Solana’s DeFi ecosystem. Source: DefiLlama
1-day price chart. Source: TradingView
Long to short ratio for SOL futures. Source: Coinglass