Solana

Solana: Tracking SOL’s highs, lows as it mirrors BTC

SOL whales increased their long exposure following the volatile day.

Published

2 months ago

March 7, 2024

Edited By: Ann Maria Shibu

SOL fell 18% after jumping to a 26-week high of $141.
SOL’s Open Interest (OI) plunged 13% following the correction.

It was nothing short of a roller coaster ride in the last 24 hours for one of the biggest cryptocurrencies, Solana [SOL].

Volatility back in SOL market

The digital asset climbed to a 26-week high of $141 following Bitcoin’s historical push past its all-time high (ATH). Because of this, Solana displaced BNB to become the fourth-largest crypto by market cap.

However, the stay at the fourth position was brief as Bitcoin’s sharp correction triggered a knock-on effect on the broader altcoin market. SOL fell 18% from the aforementioned high within the next few hours, with dip-buying causing a recovery to $130.

The end result – SOL is back to the fifth position in cryptocurrency market cap lists as of this writing.

SOL also recorded $9.5 billion in trading volumes in the 24-hour period, more than double what it was in the day prior.

Most traders still bullish on SOL

The past day’s developments threw the derivatives market into a tizzy. According to AMBCrypto’s analysis of Santiment’s data, the Open Interest (OI) in SOL futures plunged 13% following the correction.

That being said, a lot of traders were still bullish on the asset, as indicated by the positive funding rate on Binance.

Source: Santiment

SOL whales had a higher long exposure that retail as of this writing, as per AMBCrypto’s reading of Hyblock Capital data.

Interestingly, whales were not particularly bullish on SOL in the days preceding these occurrences, as illustrated below.. This could be due to SOL’s flat trajectory. However, the volatility in the last 24 hours prompted these large investors to increase their longs.