Solana, like other cryptocurrencies, has experienced a decline in open interest (OI) and price in the past 24 hours. However, traders are optimistic and see this as a favorable opportunity.
According to CoinGlass data, Solana’s OI on April 14 was $1.62 billion, a decrease of approximately 21% from the previous day. OI measures the total value of all outstanding Solana futures contracts.
As of now, Solana’s price is $136.54, down 11% in the past 24 hours, according to CoinMarketCap data.
Solana futures open interest reached its highest point this year at the beginning of the month. The sudden drop in price resulted in a loss of $36.55 million for traders who held long positions, disappointing those who were expecting a price spike leading up to the Bitcoin halving on April 20.
Other top 10 cryptocurrencies have also experienced similar declines. XRP saw the most significant drop of 12.12% in the past 24 hours, followed closely by Dogecoin with a 10.86% decrease, and Cardano with a 10.20% decrease.
While it is uncertain how long this downturn will last, traders remain positive about the overall altcoin market. Prominent trader GCR Classic, who had been silent for over a year, advised his followers on April 14 that this is a good opportunity to invest in high conviction tokens.
In contrast, crypto entrepreneur Kyle Chasse predicted in an April 13 post that altcoins could see a 20-30% increase by Monday. However, on-chain analysis firm Glassnode suggests that this may not be the case. It pointed out that Bitcoin drawdowns during previous euphoria phases have often exceeded 25%, while in the current market, there have only been two recent drawdowns of around 10% since reaching all-time highs on March 5.
Furthermore, Solana has been experiencing network issues recently. Intermittent congestion on the Solana blockchain has caused delays in several crypto projects’ launches. Solana developers are working on resolving these issues by April 15.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.