FTX Sell-Off Fears Trigger 5%Drop, Liquidating $125M Shorts? What’s Next?

The post FTX Sell-Off Fears Trigger 5%Drop, Liquidating $125M Shorts? What’s Next? appeared first on Coinpedia Fintech News

Solana, one of the prominent cryptocurrencies in the market, faced a significant 5% decline attributed to concerns surrounding FTX’s sell-off plans. However, this downturn was swiftly followed by a rebound, raising the possibility of liquidating approximately $125 million in short positions.

According to CoinGlass data, Solana’s SOL witnessed a 40% decrease in open interest (OI) over the last 30 days, plummeting to $1.78 billion on May 9. This decline in OI often signifies market uncertainty and a reluctance among traders to establish positions on the cryptocurrency.

Despite recent market turbulence, Solana has demonstrated a tendency to swiftly recover from dips, posing a threat to existing short positions. Over the past month, Solana has repeatedly rebounded by 5% within 24 hours after facing price declines.

$SOL
Price inside resistance box, time to pay attention if it consolidates here or rejects

A rejection would pull it back to $148 and below that $142.5 possible
Next 24hours are crucial for market structure to hold uptrend or not https://t.co/bgbjE9e7Qx pic.twitter.com/9bqgd53631