Solana (SOL) price rally could fizzle out due to weak fundamentals By Cointelegraph

U.S. Stock Market Has Plenty of Reasons to Rally After Fed’s Decision

Solana (SOL) price rally could fizzle out due to weak fundamentals

Cryptocurrency Jan 24, 2023 04:00PM ET

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Solana (SOL) price rally could fizzle out due to weak fundamentals

SOL/USD

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Solana’s (SOL) recent 250% rally to $25 has shocked many investors in the crypto market. At the same time, traders who had eyes on the negative funding rate for SOL in the futures market could have anticipated the bullish move ahead of others.

It’s because excessive negative funding rates, like the one in Solana displayed below, implies that the majority of traders are on the short side, providing an opportunity for buyers to run their stops.

SOL funding rate for perpetual swaps. Source: Coinglass

Share of NFT trading volume by blockchains from Dec. 4 to Jan. 4. Source: Delphi Digital

NFT traders per week on Polygon (left) and Solana (right). Source: Nansen

Total gas spent on Solana. Source: token terminal

Total locked value in Solana’s DeFi ecosystem. Source: DefiLlama

SOL/USD 1-day price chart. Source: TradingView

Long to short ratio for SOL futures. Source: Coinglass

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