Solana Records Spike in Open Interest Following FTX Crash
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Solana suffered a severe price impact after FTX collapsed and dropped more than 60% in just 10 days. Although there have been slight increases in the SOL price over the past week, the general market gloom continues to be a barrier.
Soon after FTX crashed, Solana’s fortunes started to fall. Following FTX’s filing for Chapter 11 bankruptcy on November 11, attention turned to the Solana Foundation’s exposure to the defunct exchange, which as of November 6 contained about $1 million in cash or cash equivalents on FTX.com.
On November 24, however, new gains were injected, and the price of SOL increased by about 20% from its multi-month low of roughly $10. Solana’s price has decreased from over $30 to $14, with recent lows at around $20. Since the beginning of the year, the cost of Solana has decreased from $30 to roughly $14.50.
But even while Bitcoin dominated the spot market’s pricing activity, Solana made some progress there.
Open Interest in Solana Is Increasing
Open interest and financing rate statistics shed light on market trends and the possibility of a change in the price trend. According to statistics from Coinalyze, open interest in Solana has increased by approximately 6% over the past 24 hours, which is consistent with the market’s primarily negative behavior. SOL had an open interest of $251.8 million at the time of writing.
That said, increased open interest and primarily bearish price behavior could be signs that more people are starting short bets. A negative funding rate suggests that traders with short positions are in charge. A downward trend frequently occurs when anything like this happens.
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