Solana
Solana (SOL) Open Interest Data Paints a Bullish Picture — TradingView News
Solana SOLUSD is one of the tokens with the most erratic growth curves in the digital currency ecosystem. For now, Solana price has reversed course, falling 1.92% to $165.94, a price well below the 24-hour high of $180.17 printed earlier.
It remains rare to find such price swings in the market, and while there is an obvious bearish takeover, Solana Open Interest (OI) data paints a different picture. OI, according to Coinalyze data, stands at $2 billion, up 2.37% in the last 24 hours. With a large OI, it becomes evident that the market, seen from a derivatives perspective, is bullish on SOL.
This bullish turn is significant for the digital currency, as Bloomberg earlier reported that FTX Estate’s sale of Solana had ended. This is a crucial update whose importance depends on the heavy selling pressure placed on the coin by the bankrupt company.
After the collapse of FTX, the exchange explored enough ways to free up funds to repay its creditors and users. As one of the largest holders of Solana and other altcoins, the company received permission to auction these tokens. Companies like Pantera have been the main beneficiaries of these scheduled auctions.
With liquidation fears aside, market analysts believe that Solana may now be allowed to meet prices based on the natural forces of supply and demand. This is likely to provide huge upside potential for the coin, as it is considered undervalued by many.
Over the past few months, Solana has changed its own fortunes by addressing its network congestion issues with a patch rollout on the mainnet. In addition to bullish data from Open Interest, Solana benefits from fundamental support – anchored in ETF projections – that supports its retest of $200 in the medium term.