Solana open interest sheds nearly $440M as price slumps 11%

Open Interest in Solana is down 21% compared to the previous day as its price dips below levels unseen in over 30 days.

Solana (SOL) open interest (OI) and its price have declined in the past 24 hours mirroring a broader decline across the cryptocurrency market. However, traders are remaining optimistic, viewing it as a “good opportunity.”

On April 14, Solana’s OI stood at $1.62 billion, approximately 21% down from the previous day, as per CoinGlass data. OI measures the total value of all outstanding or unsettled Solana futures contracts across exchanges.

At the time of publication, Solana’s price is $136.54, down 11% over the past 24 hours, as per CoinMarketCap data.

The sudden drop in Solana’s price erased $36.55 million worth of traders’ long positions, potentially disappointing those anticipating a price spike leading up to the Bitcoin halving on April 20.

The remaining top 10 cryptocurrencies have seen a comparable decline, with XRP (XRP) experiencing the most significant drop at 12.12% over the past 24 hours. Dogecoin (DOGE) followed closely with a 10.86% decrease, while Cardano (ADA) trailed slightly behind at 10.20%.

It’s uncertain how long this downturn will last, yet traders maintain a fairly positive outlook for the overall altcoin market.

The market-wide price decline prompted prominent trader GCR Classic to break his silence on X after over a year, advising his 273,500 followers on April 14 that the current moment presents an “goodopportunity to scale into high conviction tokens.”

Meanwhile, in an April 13 X post, crypto entrepreneur Kyle Chasse told his followers that they will “probably see altcoins up like 20-30% by Monday.”

Although on-chain analysis firm Glassnode suggests that might not be the case. It highlighted that Bitcoin drawdowns have been much worse in previous “euphoria phases,” which many traders use as an indicator for the rest of the market.

In an April 12 post on X, it explained that during previous euphoria phases, price retracements have often exceeded 25%. However, in the current market, there have only been two recent drawdowns of around 10% since surpassing all-time highs on March 5.

Related: Solana memecoin frenzy raises questions about crypto utility, reputation

This comes after multiple issues with Solana’s network were reported in recent times.

On April 9, Cointelegraph reported that intermittent congestion on the Solana blockchain forced several crypto projects to postpone their launches. Solana developers say they are working on a fix by April 15.

Users of the Solana blockchain reported increasing issues around network congestion and transaction errors over several weeks. New projects, especially those planning token launches, decided to hold off until the technical difficulties were resolved.