- Solana remains the only top 10 crypto with a negative funding rate which could mean traders are increasing their shorts on the coin.
- Even though there has been much interest in futures, both daily active addresses and the price of Solana have decreased.
- Because of the weakening bullish momentum shown by technical indicators, traders should be careful.
A subtle signal in the market has recently led discussions about Solana (SOL), one of the top 10 cryptocurrencies. Glassnode’s on-chain data shows that SOL is the only major crypto asset, excluding stablecoins, currently in a negative funding rate.
This rate is -0.0002% and it may be tiny, but it is a recognizable number. Funding rates are created to make sure perpetual contracts are trading near the current spot price. When the funding rate is negative, the ones who think the price will fall are paying the ones who think the price will rise.
Source: X @glassnode
As the number is very small, it reflects that traders are starting to get cautious about a possible price drop or might even be protecting themselves against incurring losses.
Solana Price Remains Steady, but There’s a Gap Between Activity and Interest
SOL is currently trading for $175.88, which is a 0.92% decrease from yesterday’s price. The value after seven days is $174.90, and 76.1% of its volume is in profit, which means most holders have not yet sold for less than they bought.
At present, Solana is seeing a 4% decrease in daily active addresses, indicating that fewer people are using its blockchain. Trading on the blockchain network is currently at $3.5 billion a day, with futures open interest totaling $4.5 billion, indicating a lot of interest from traders in derivatives.
Technical Signals Show that Momentum May be Fading
Solana’s price, according to TradingView, displays that after dipping early in the year, its price has moved sideways since then. At the time of writing, the Relative Strength Index (RSI) shows a slightly bullish aspect for the market, although it’s not yet considered overbought.
Source: TradingView
Meanwhile, the other momentum indicator, the MACD, is pointing to a possible slowdown in the rise. Right now, the MACD line is a little higher than the signal line, and the space between them has become smaller, showing that a cooling-off phase might be starting.
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