- Solana struggles to surpass the $200 resistance level, leading to a decline in investor optimism and OI.
- The funding rate for Solana experiences a significant decrease, indicating traders’ reluctance to open bullish positions.
- Despite challenges, Solana remains attractive to institutional investors, evidenced by a substantial influx of approximately $25 million.
Solana (SOL) underwent a notable ascent, peaking at $210 before encountering a sharp downturn. Despite attempts to breach the $200 threshold over the past fortnight, SOL has been unable to do so, fostering a sense of apprehension among investors.
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Presently valued at $190, Solana grapples with persistent resistance at the $200 mark, signaling diminishing investor confidence, as evidenced by a decline in Open Interest (OI). Within a brief span of two days, OI plummeted by 15%, from $3.14 billion to $2.88 billion, indicating a reluctance among traders to initiate bullish positions amidst the ongoing consolidation phase.
Furthermore, a dwindling funding rate underscores traders’ growing reluctance to engage in optimistic positions. This metric, integral to perpetual futures contracts, mirrors the market’s downward trajectory, reaching one of its lowest points in recent months.
Without a resurgence in both Open Interest and the funding rate, the SOL price could continue its descent, potentially settling into a bearish trend. Presently, Solana bulls face the task of reclaiming the 50-day EMA to solidify support above the $181 mark. However, even in the event of another attempt to breach the $200 resistance, SOL may face a potential dip to $168.
This places SOL in a consolidation phase, oscillating between $168 and $200, with the likelihood of lateral movement persisting in the near term. Despite these challenges, Solana maintains its appeal among institutional investors, as evidenced by its recent influx of approximately $25 million, surpassing other major altcoins.
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