As the market revived on Friday, traders showed varied levels of interest in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). SOL appeared to lag behind in Open Interest (OI) rates, which monitor interest from Futures traders and overall liquidity inflow. While BTC recorded $12 billion and ETH $5.3 billion in OI, SOL only managed $1.7 billion.
Nevertheless, according to insights from Santiment, this lag could actually indicate a bullish outlook for SOL. The crypto-analytics firm noted,
“Despite the minimal attention on Solana’s climb above $140, this could be interpreted as a positive signal for SOL, as traders with high spirits are focusing elsewhere.”
Optimistic Speculation Surrounding SOL
Similar to the broader market trend, the weekend recovery brought SOL out of the realm of negative sentiment. Currently, speculators are showing significant optimism towards the altcoin for the first time since late August.
This optimism implies a strong belief in potential price increases going forward. However, a different narrative emerges from shorter time frame charts at present.
Specifically, the aggregated Spot Cumulative Delta (CVD) demonstrated a downward trend, revealing that selling pressure on SOL surpassed buying activity as the coin pushed towards $140.
Simultaneously, the OI remained relatively stable, suggesting that some traders were entering short positions on the altcoin over the weekend.
Moreover, fluctuating funding rates indicated that short positions could hinder a robust move above $140 during the weekend.
Despite retail traders leaning towards short positions, institutional investors on Binance continued to increase their long positions. As per the Binance Top Trader Long/Short Ratio, long positions constituted 60% of all held positions.
While this showcased a high confidence in SOL’s upward potential, it might also indicate a protective measure against existing spot positions.
At the time of writing, SOL was valued at $137, reflecting a 7.5% increase in the past seven trading days, reaching a monthly peak of $139.8.
Looking ahead, the upcoming week promises to be eventful for the altcoin. Besides anticipating a bullish turn following the Fed rate adjustments on September 18, Solana’s BreakPoint 2024 event scheduled for September 20-21 in Singapore could further boost momentum for the token.
This event historically correlates with a price surge, given that insiders often reveal the latest developments in the Solana ecosystem.