Conclusion first: SOL open interest increased by 1.7% in a day, yet the funding rate is negative. The market is adding positions, but longs were liquidated first.
Current price is $117.18, down 1.55% over the past 24 hours. Binance and OKX quotes and their declines are basically in line. In the past 24 hours, SOL liquidations totaled $6.16 million, with longs at $5.21 million—85%. In the past 4 hours, longs accounted for 87% as well; people chasing longs are still getting forced out.
Rates are also warning of risk: Binance is at negative 0.0025%, OKX at negative 0.0043%, and short sellers are getting funds for now. But open positions haven’t been withdrawing; instead, they’ve risen to 5.26 billion USD, suggesting some people are catching the dips, while others are propping up with leverage.
The issue is that Binance and OKX positions have both decreased by 2.69% and 2.53% respectively over the past 4 hours, and the increase across the whole network mainly comes from other platforms. If SOL continues to weaken, new positions will push the liquidation pressure further back rather than disappearing out of thin air.
$SOL $BTC
With negative funding rates boosting positions, will you keep going long on SOL, or wait for leverage to come down first?
Check in real time: https://www.coinboss.com/currencies/SOL