Welcome to Extreme Investor Network, where we provide unique and valuable insights into the world of stock market trading, Wall Street, and beyond. Today, we are diving into the world of Solana and exploring the current state of its derivative market.
According to the latest data from Coinglass, Solana bears have deployed leverage positions totaling $150 million in SOL perpetual futures contracts. This significant amount indicates that traders are positioning themselves to profit from a potential decline in Solana’s price in the near future. On the flip side, leveraged LONG positions only total $119 million, creating a notable gap of $31 million in favor of the bears.
This imbalance between SHORT and LONG contracts, with SHORTs outweighing LONGs by approximately 26%, points towards strong bearish sentiment in Solana’s derivative market. Traders seem to be betting on a sustained downtrend or a sharp selloff, as evidenced by the large amount of money being wagered on a price decline.
The bearish outlook is further emphasized by Solana’s recent price movement, with the cryptocurrency dipping 2.81% to $133.38 on September 15, 2024. The Donchian Channel (DC) indicates key support at $120.62 and resistance at $159.68, with a potential retest of the lower bound looming. If the bulls fail to hold the $120 support level, we could see further downside pressure leading to a deeper correction in SOL’s price.
Overall, the current state of Solana’s derivative market and price forecast indicate a cautious outlook for traders and investors. Stay tuned to Extreme Investor Network for more expert analysis and insights to help navigate the ever-changing landscape of the stock market and trading world.