Solana Funding Rates Hit 17-Day Negative Streak — What This Means For Price

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Solana (SOL) has been significantly affected by the bear market, reporting a price loss of 37.38% in the last 30 days alone. Despite the late price relief seen last week, the altcoin remains about 70% off its all-time high, reflecting the dominant selling activity of recent months. Notably, funding rates data suggest traders are yet to see an imminent end to this turmoil, as open interest positioning reflects strong conviction toward further downside. Related Reading Solana Reclaims $80 Amid Friday Market Bounce – Analysts Set Next Targets 1 day ago Solana Bearish Funding Stretch Sets New Low In 2.5 Years Funding rates are periodic payments exchanged between traders in perpetual futures markets to keep the futures price aligned with the spot price of an asset. Funding rates show which side of the market is more crowded, buyers (longs) or sellers (shorts), and thus a good sentiment indicator. Negative funding rates suggest that short traders are dominant, with a higher percentage of market participants presently betting on a price fall. According to market analyst Ted Pillows , the Solana market has recorded a negative funding rate for 17 consecutive days, indicating that traders have been aggressively positioned on SOL for over two weeks. Source: @TedPillows on X The market analyst explains that the bearish sentiment around Solana hasn’t touched these extremes in over 2.5 years. Therefore, this development is indicative of a sustained directional conviction and not regular market noise. However, there are two likely scenarios to develop from this concerning situation. Firstly, Solana may continue to bleed downward as spot buying pressure remains weak, combined with the sustained decline in macro risk appetite. On the other hand, the market might also experience a short squeeze marked by rapid upward price movement. This can be due to an exhaustion of selling pressure, after an overwhelming market majority opens short positions. In conclusion, while Solana traders and investors remain strongly bearish, there is still potential for reverse price moves to catch these overcrowded trades off guard. Related Reading Bitcoin On-Chain Data Indicates High Volatility Ahead Following Post-CPI Reaction 13 hours ago Solana Price Outlook At the time of writing, Solana trades at $88.01, reflecting a 3.81% gain in the last day. Meanwhile, the daily trading volume is down by 24.9% and valued at $2.89 billion. According to a renowned market analyst, Ali Martinez , data from the UTXO Realized Price Distribution (URPD) metric highlights key Solana price levels. While $85.55 was previously identified as a resistance zone, Solana’s move toward the $88 level suggests this region may now be flipping into a support area, reinforcing its importance as a short-term demand zone. SOL trading at $87.51 on the daily chart | Source: SOLUSDT chart on Tradingview.com Featured image from Nairametrics, chart from Tradingview