Solana Faces Declining Market Confidence as Funding Rate Drops by 81%
Solana (SOL) has experienced significant volatility, with its funding rate and user activity declining sharply, despite the price currently trading at $225. While it shows some strength, concerns over market confidence persist.
Key Points
1. Funding Rate Decline
Solana’s funding rate dropped by 81% in the last 48 hours, reflecting a weakening bullish sentiment.
Traders are leaning toward short positions, anticipating further price declines.
2. Falling User Engagement
Solana’s active addresses have hit their lowest level this December, indicating reduced user participation.
Declining activity weakens market perception and may hinder Solana’s liquidity and adoption.
3. Price Analysis and Predictions
Currently trading at $225, Solana is attempting to flip $221 into a strong support level.
If it maintains support above $221, the price could rally toward $245, signaling improved sentiment.
A failure to sustain $221 might lead to a pullback toward $201, reinforcing a bearish outlook.
Outlook: Solana needs to maintain support above $221 and boost user activity to regain market confidence. A sustained rally past $245 could shift sentiment back to bullish territory.
