In the last 24 hours, the cryptocurrency market, including Solana, has witnessed a significant decline. Solana’s open interest (OI) dropped to $1.62 billion, marking a 21% decrease from the previous day.
CoinGlass data reflects this slump in OI, which represents the total unsettled value of all Solana futures contracts across exchanges.
Concurrently, Solana’s price decreased by 11% to $136.54, according to CoinMarketCap.
This downturn resulted in the liquidation of $36.55 million in long positions for traders, dampening the optimism of those who anticipated a price surge prior to the Bitcoin halving scheduled for April 20.
Similarly, other major cryptocurrencies also faced declines, with XRP, Dogecoin, and Cardano dropping 12.12%, 10.86%, and 10.20% respectively.
Despite the market’s current state, the sentiment among traders remains somewhat positive.
A notable trader, GCR Classic, after a long period of silence, resurfaced on social media platform X on April 14, advising his 273,500 followers that the downturn poses “a good opportunity to scale into high conviction tokens.”
READ MORE: XRP Shows Signs of Recovery Ahead of Bitcoin Halving, Poised for Bullish Reversal in 2024
Moreover, on April 13, crypto entrepreneur Kyle Chasse optimistically predicted on X that altcoins might increase by 20-30% by the following Monday.
However, Glassnode, an on-chain analysis firm, presented a more cautious perspective.
In an April 12 post, Glassnode pointed out that current Bitcoin drawdowns are less severe compared to those in past ‘euphoria phases’, where retracements often surpassed 25%.
Additionally, the Solana network has been experiencing operational challenges.
Reports on April 9 highlighted intermittent congestion which led several projects to delay their launches.
Solana developers have acknowledged these issues and are aiming to implement a fix by April 15.
As for network reliability, users have reported ongoing problems with congestion and transaction errors over recent weeks, prompting new projects, particularly those planning token launches, to postpone their initiatives until the technical issues are resolved.
These combined factors contribute to a cautious yet hopeful outlook among cryptocurrency traders and participants.
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