Solana’s open interest has dropped by nearly $440 million, corresponding to an 11% decline in its price. This decrease in open interest, which measures the total value of unsettled futures contracts, reflects a broader trend in the cryptocurrency market.
As of April 14, Solana‘s open interest stood at $1.62 billion, down by 21% from the previous day, according to data from CoinGlass. Concurrently, Solana’s price has dipped to $136.54, marking an 11% decrease over the past 24 hours, as reported by CoinMarketCap.
The sudden price drop has liquidated approximately $36.55 million worth of long positions held by traders, disappointing those who were expecting a price surge ahead of the Bitcoin halving on April 20.
Other top 10 cryptocurrencies have experienced similar declines, with XRP witnessing the most significant drop of 12.12% over the past day, followed by Dogecoin with a 10.86% decrease, and Cardano with a 10.20% decline.
Despite the current downturn, traders maintain optimism for the overall altcoin market. Notably, prominent trader GCR Classic broke their silence after over a year to advise their followers on April 14 that the current situation presents a “good opportunity to scale into high conviction tokens.”
Crypto entrepreneur Kyle Chasse also shared his perspective with followers on April 13, suggesting that altcoins could see gains of up to 20-30% by Monday. However, on-chain analysis firm Glassnode suggests caution, pointing out that previous euphoric phases in the market have seen more significant price retracements, exceeding 25%.
The recent decline in Solana’s price occurs amidst ongoing network issues. Several projects have postponed their launches due to reports of occasional congestion on the Solana blockchain.
Solana developers are working on resolving these technical difficulties by April 15, aiming to address increasing network congestion and transaction errors reported by users over the past few weeks. As a result, some projects have postponed token launches until these issues are resolved.
