By George Ward
The price of SOL increased by nearly 2% on November 24 following multiple months’ low of under 10 dollars, spurred on by a smell of new gains. The SOL price lost the $30 mark and traded below $20 before a rebound to its current price of about $14.
The funding rate and open interest values provide insight into the market’s direction and potential shifts in price trends. Solana’s open interest rose by over 7.5%, despite the drop in its price. Solana’s open interest totaled about $252 million as of this writing.
The increasing open interest despite the poor price action indicates strong action from the bears. The negative funding rate suggests that the bears are in control of the token and unwilling to relinquish control to the bulls.
The bears’ dominance indicates that recovery might take some time. However, this selling pressure is already weakening. Hence, a relief rally similar to the current one wasn’t surprising.
Buzz In Solana Development Activities
There were still a lot of development activities on the Solana network despite the poor price performance of SOL. Even though developer contributions were above average this month, there was a considerable spike in development activities on the network.
Nevertheless, social volume data indicates that there weren’t enough social media discussions about SOL. Hence, SOL’s social dominance declined following the negative weighted sentiment.
However, a sharp increase in its volatility accounted for its latest 20% rise. There have been massive swings as this volatility surged to a 6-month high.
Despite the peak volatility levels at the moment, it is likely that SOL will still experience similar price swings, either positive or negative bias over the short term. The $20 price level would be SOL’s psychological barrier and crucial to its new bullish run or recovery.
The $8 price will act as support if the bears continue to gain a firm hold on the asset. SOL’s price and market cap continue to suffer like the broader crypto market following the unexpected implosion of the FTX crypto exchange.
Per Coingecko data, the drop in SOL’s market cap has seen it lose its ranking to Litecoin.