Main takeout:
SOL’s funding rate shows careful feelings, but historical patterns emphasize potential short -term price profit.
The financial strategy and basics still remain supportive, but the network use and competition reduced the SOL.
SOLANA’s Aboriginal token, SOL (SOL), dropped to Tuesday to $ 213, and the risk avoidance of the cryptocurrency market has increased. Following Wednesday, the US interest rate was reduced, and the initial optimism disappeared rapidly as concerns about the labor market and inflation pressure were reinstated.
According to CoingLass data, the price of SOL has fallen by 12%over 48 hours, triggering a $ 122 million leverage position. This sudden correction shows exaggerated fear as traders have questioned whether they are signing a deeper move or worsen the macro economic environment.
The rate of financing of Sol Perpetual Future has been close to 0 on Tuesday, which is limited in demand for long positions. Under neutral market conditions, this indicator is generally between 6% and 12%. In other words, the buyer is paying to maintain exposure. The last main period of excessive optimism is that the financing rate soared to 30%on August 14, indicating the use of the strongest.
When SOL briefly reached $ 253 on Thursday, the financing rate remained neutral, and merchants hesitated to add the other bet. Nevertheless, the lack of demand for leverage in the derivative market does not necessarily mean the expectation of weakness.
On August 19, the SOL financing rate turned over the voice after a 13.5% decrease in five days. But $ 176, $ 176, proved a strong entry point of $ 206 on August 24. A similar trend developed earlier.
SOL Price Drop is a decrease in network activities and coincides with new competitors.
By reducing activity on the Solana network, you can explain some of the muted passion for the SOL. Traders can explain because they are getting more and more attention to derivatives trading in ASTER. The platform was released by YZI LABS (formerly Binance Labs) in the BNB chain, which was released on the market with no maximum extractable value and publicly approved by Binance founder Changpeng Zhao.
In the last seven days, Solana’s active address has decreased by 28%, while network costs have been reduced by 15%. In contrast, Ether Leeum’s fees rose 28% over the same period and BNB chains increased 74%. The arrival of competitors such as Hyperliquid challenged Solana’s recognized advantages, especially ASTER’s documents, as mentioned the development of their own blockchain.
Nevertheless, as more companies pursue a strategy to build strategic cryptocurrency reserves, the risk of falling SOL may be limited. The recent movement came from Australia -based Fitell Corp (FTEL), issuing $ 100 million converter notes to support the launch of the “Solana Financial Strategy”. According to the company, the plan is to create a yield by placing a combination of onChain and derivatives strategies.
The wider market conditions also weighed the emotions. On Tuesday, the inflation of Jerome Powell, chairman of the US Federal Reserve and the weakening of the US labor market, urged the NASDAQ index, which has a lot of technology that day, dropped 1% that day. As the risk evasion rises, the market capitalization of cryptocurrency has been reduced to $ 178 billion after Sunday.
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There is no clear sign that the SOL trader expects a $ 200 re -test depending on the negative permanent future funding rate. According to the Defillama indicator, the Solana network continues to lead the number of transactions and activity addresses and ranked second in the total value locked (TVL). These measurement items strengthen the case of potential price recovery as dangerous appetite gradually becomes profitable.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.