Solana’s open interest (OI) and its market value have both taken a hit in the last day, reflecting a broader downturn seen across the cryptocurrency landscape. Despite this setback, traders are holding onto optimism, seeing it as a potential “silver lining.”
As of April 14, Solana’s OI stood at $1.62 billion, marking a decrease of roughly 21% from the previous day, according to data from CoinGlass. OI serves as a measure of the total worth of all outstanding or unsettled Solana futures contracts across various exchanges. At present, Solana’s price sits at $138.77, showing an 8.83% decline over the past 24 hours, according to CoinMarketCap.
The abrupt dip in Solana’s price wiped out approximately $36.55 million worth of traders’ long positions, potentially disappointing those who were anticipating a surge in prices leading up to the Bitcoin halving on April 20.
Similar to Solana, the top 10 cryptocurrencies have witnessed significant drops, with XRP experiencing the most substantial decline of 12.12% over the past day. Dogecoin followed closely behind with a 10.86% decrease, while Cardano trailed slightly at 10.20%.
The duration of this downturn remains uncertain, yet traders are holding onto a moderately positive outlook for the broader altcoin market.
Noteworthy trader GCR Classic broke their silence on X after more than a year, advising their 273,500 followers on April 14 that the current situation presents a “prime opportunity to invest in high-conviction tokens.” Meanwhile, crypto entrepreneur Kyle Chasse suggested in an April 13 post that altcoins could see gains of around 20-30% by Monday.
However, on-chain analysis firm Glassnode suggests otherwise. It pointed out that Bitcoin drawdowns during previous “euphoric phases” have been more severe, which many traders use as an indicator for the wider market.
In an April 12 post, Glassnode explained that during previous euphoric phases, price retracements have often surpassed 25%. However, in the current market, there have only been two recent drawdowns of around 10% since reaching all-time highs on March 5.
This downturn comes amidst several network issues with Solana in recent times. On April 9, reports surfaced that intermittent congestion on the Solana blockchain led to delays in several crypto projects’ launches. Solana developers have announced efforts to address these issues by April 15.
Users of the Solana blockchain have reported increasing problems related to network congestion and transaction errors over the past few weeks. Consequently, new projects, especially those planning token launches, opted to wait until the technical challenges were resolved.
