$SOL just dropped to 78.6, its lowest since 8/19. It was still around 89 last Friday, down nearly 12% in a week. Yet more and more Binance futures accounts are going long, climbing from 76.7% in the early hours yesterday to around 78% now. Meanwhile, large traders’ long positions have gradually slipped from 70% to 68%. So who’s buying the dip?
My read is that retail traders think it’s fallen enough and are trying to catch the bottom, while larger players are gradually trimming their long positions. Futures open interest has barely moved over the past two days, stuck between 9.6 million and 9.75 million coins. No major sell-off, but no fresh money rushing in either. The funding rate for the 8 a.m. period returned to 0.01%, so longs are still paying shorts.
Today, $BTC also fell below 70,000 and is now hovering around 69,000. Until the broader market finds its footing, a one-sided long trade like SOL is especially vulnerable to a long lower wick wiping out all those crowded long positions at once.
82 was the range from yesterday through this morning. Until it gets back above that level, I’m treating this as a market that’s still trying to find a bottom. I’d rather enter later and pay a little more. If you do enter, split your position into smaller chunks and decide in advance where you’ll cut each one if you’re wrong.
#SOL #LongShortRatio #Whales #Futures
For more resources, see the BIO on my profile.
Not investment advice. Investing involves risk.
My read is that retail traders think it’s fallen enough and are trying to catch the bottom, while larger players are gradually trimming their long positions. Futures open interest has barely moved over the past two days, stuck between 9.6 million and 9.75 million coins. No major sell-off, but no fresh money rushing in either. The funding rate for the 8 a.m. period returned to 0.01%, so longs are still paying shorts.
Today, $BTC also fell below 70,000 and is now hovering around 69,000. Until the broader market finds its footing, a one-sided long trade like SOL is especially vulnerable to a long lower wick wiping out all those crowded long positions at once.
82 was the range from yesterday through this morning. Until it gets back above that level, I’m treating this as a market that’s still trying to find a bottom. I’d rather enter later and pay a little more. If you do enter, split your position into smaller chunks and decide in advance where you’ll cut each one if you’re wrong.
#SOL #LongShortRatio #Whales #Futures
For more resources, see the BIO on my profile.
Not investment advice. Investing involves risk.