Solana’s Open Interest Plummets by $440M on 11% Price Drop

The open interest (OI) and price of Solana (SOL) have decreased in the past 24 hours, which is in line with the overall decline in the cryptocurrency market. Traders are optimistic and see this as a good opportunity. According to CoinGlass data, Solana’s OI on April 14 was $1.62 billion, a drop of 21% from the previous day. OI measures the total value of Solana futures contracts that have not yet been settled across exchanges. CoinMarketCap data shows that Solana’s price is currently $136.54, down 11% in the past 24 hours. Other top cryptocurrencies like XRP, Dogecoin, and Cardano have also experienced similar declines.

Despite this downturn, traders are maintaining a positive outlook for the altcoin market as a whole. Prominent trader GCR Classic, who had been silent for over a year, recently advised his followers that this is a good opportunity to invest in high conviction tokens. Similarly, crypto entrepreneur Kyle Chasse predicted that altcoins could increase by 20-30% by Monday.

While some believe that this decline may continue, as indicated by Glassnode, which suggests that there could be further drawdowns for Bitcoin, many traders use Bitcoin as an indicator for the overall market. Glassnode explains that during previous euphoric phases, price retracements often exceeded 25%. In the current market, there have only been two retracements of around 10% since reaching all-time highs on March 5.

Solana has faced several issues with its network recently. The Solana blockchain has experienced intermittent congestion, causing delays for several crypto projects. As a result, these projects have had to postpone their launches. Solana developers have stated that they are working on resolving these technical difficulties by April 15. Users of the Solana blockchain have reported increasing problems with network congestion and transaction errors over the past few weeks, causing new projects to wait until these issues are resolved.