- Activity around Solana
- Futures positioning
Even after months of significant drawdowns, the market is once again willing to take risk on SOL, as evidenced by the fact that Solana crossed the $8 billion open interest threshold. At this level, open interest indicates that traders are actively positioning rather than passively watching and that leverage has returned to the system.
Activity around Solana
Solana is not currently a forgotten asset based on that alone. In terms of price, SOL is not trending, but technically it is still recovering. The price found a base in the low $120s and has risen steadily since the sharp sell-off from the $200+ area. The bounce seems more controlled than exuberant.
The 100 and 200 day EMAs are still sloping downwards and SOL is trading below its main long-term moving averages. The short-term structure is improving, but the overall trend remains bearish or neutral for the time being. Here it matters where this open interest is developing.
Futures positioning
Futures positioning has changed significantly in favor of longs, especially around whales. There are two sides to that. On the one hand, it conveys the belief that SOL ecosystem activity and its long-term history are undervalued. However, if the price is unable to hold important support zones between $130 and $135, there is a greater possibility of abrupt sell-offs.
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Chain and flow data indicate mixed but stable conditions. Spot volumes remain low compared to previous cycle highs, indicating that derivatives, rather than organic spot demand, remain the primary driver of this shift. However, the lack of aggressive spot sales is encouraging, as sellers are not rushing to sell at these prices.
Volatility is going to be the main risk. Even the slightest changes in price can cause overreactions when open interest is so high. False breakouts or sharp moves in either direction are easy to occur on weekends and during low liquidity sessions. Instead of a clear continuation of the trend, investors should anticipate instability.
This buildup in open interest may support a broader trend reversal if SOL can recover and stay above $140 while controlling funding rates. Otherwise, it wouldn’t be surprising to see a color towards the bottom bracket. In any case, it is clear that Solana is back on traders’ radar, and that in itself is game-altering.