Solana$SOL Traders Have an Ace Up Their Sleeve
Solana’s macro momentum is currently reflecting a gloomy outlook, as confirmed by key technical indicators. The Relative Strength Index (RSI) has fallen below the neutral 50.0 level, indicating that bearish momentum is strengthening. The RSI in bearish territory suggests that selling pressure has increased, and there is little chance of a reversal in the near future.
After Solana failed to break through the resistance at $161, the bearish sentiment is intensifying. The RSI shows no signs of recovery, and SOL is at risk of continuing to decline. Market sentiment towards Solana has worsened. Traders are preparing for a possible further price decline by opening short contracts in the futures market. They currently outnumber long ones.
The same is indicated by the negative value of the funding rate. This is a mechanism that ensures a balance between long and short positions in the perpetual futures market. Positive values indicate the dominance of long contracts and indicate that the contract price is higher than the spot price. This means that more traders are buying the coin in the hope of selling it at a higher price.
Meanwhile, a negative funding rate means more traders are buying an asset in anticipation of a price drop rather than a price rise. In the case of SOL, the funding rate has become negative for the first time in two weeks.$ADA $ETH
