In a notable downturn within the cryptocurrency market, Solana’s open interest has seen a sharp decrease of 21%, reflecting broader market trends. As of April 14, the total value of unsettled Solana futures contracts was reported at $1.62 billion, marking a significant reduction from the previous day’s figures.
Simultaneously, Solana’s market price has fallen to $136.54, representing an 11% decline over the last 24 hours. This drop has led to the liquidation of approximately $36.55 million in long positions, dampening the spirits of investors who were hopeful for a price increase in anticipation of the upcoming Bitcoin halving event on April 20.
This downturn is not isolated to Solana; other major cryptocurrencies have also experienced similar declines. XRP saw the largest decrease, dropping by 12.12%, followed by Dogecoin and Cardano, which fell by 10.86% and 10.20%, respectively.
Despite the current market challenges, some traders remain optimistic about the potential for recovery. Prominent trader GCR Classic recently advised his followers that the current market conditions might present a favorable opportunity to invest in high-conviction tokens.
Crypto entrepreneur Kyle Chasse also suggested that there might be a significant rebound in altcoin prices in the near future, potentially seeing increases of 20-30% by the following Monday.
However, caution is advised as on-chain analysis from Glassnode indicates that the market might not be as resilient as some believe. Historical data shows that during previous euphoria phases, price retracements have often exceeded 25%, suggesting that the current market conditions could persist or worsen.
Adding to Solana’s challenges are ongoing network congestion issues, which have forced several projects to delay their launches. Developers are reportedly working on a solution expected by April 15, which could help stabilize the network and restore confidence among users and investors.
