SOL fell 18% after jumping to a 26-week high of $141.
On an adjusted basis, SOL's open interest (OI) plunged 13%.
The past 24 hours have been nothing short of a roller coaster ride for one of the largest cryptocurrencies, Solana [SOL].
SOL market volatile again
The digital asset climbed to a 26-week high of $141 after Bitcoin broke above all time highs (ATH). As a result, Solana replaced BNB as the fourth largest cryptocurrency by market capitalization.
However, Bitcoin’s stay at the fourth position was short-lived as its sharp correction triggered a ripple effect on the broader altcoin market. Over the next few hours, SOL fell 18% from the aforementioned highs, with bargain hunting leading to a rebound to $130.
The end result – as of this writing, SOL is back in fifth place on the cryptocurrency market cap rankings.
SOL’s 24-hour trading volume also hit $9.5 billion, more than double the previous day’s volume.
Most traders remain bullish on SOL
Developments over the past day have sent derivatives markets into disarray. Open interest (OI) in SOL futures plunged 13% on an adjusted basis, according to an AMBCrypto analysis of Santiment data.
Having said that, many traders remain bullish on the asset, as shown by Binance’s positive funding rates.
As of this writing, SOL whales have higher retail long-term exposure, according to AMBCrypto's interpretation of Hyblock Capital data.
Interestingly, Whales were not particularly bullish on SOL in the days leading up to these events, as the chart below shows. This may be due to the flat trajectory of the SOL. However, the volatility of the past 24 hours has prompted these large investors to increase their long positions.
调整后市场降温
That being said, market sentiment has shifted from "extremely greedy" to "greedy." The market's calmness suggests there is room for further gains in the coming days.
Furthermore, there has been no significant increase in mentions of SOL in the top cryptocurrency-focused social channels, indicating tepid retail interest.
