- Solana rose for a third day as it traded above $29 at the time of writing
- Nevertheless, negative financing rates dominated the derivatives side of the market
Solana [SOL] has captured the imagination of market observers not only for its northward trajectory, but also for the way it boldly charted its course away from the market’s traditional rhythms. As this optimistic trend unfolds, two crucial numbers are now sending clear signals for SOL.
– How much is 1,10,100 SOLs worth today?
Solana’s series continues
Solana’s daily timetable showed an impressive three-day winning streak, with the most modest gain being a remarkable 6%. At the time of writing, the increase was already over 8%, pushing SOL’s trading price past the $29 mark.
The magnitude of this price increase was further underlined by the Relative Strength Index (RSI), which at the time of writing was comfortably above 80 and in overbought territory. This existing RSI status served as an insightful reference point and will highlight the following key statistics.
Source: TradingView
Solana’s TVL is growing silently
Initially, Total Value Locked (TVL) for Solana appeared to be on a steady course DefiLlama. And yet, a closer examination revealed an important shift. By the beginning of the year, TVL was approximately $217 million. However, at the time of this update, it had risen above $344 million.
Source: DefiLlama
This expansion highlighted the significant growth the network has experienced over the past ten months. It also suggested that the ecosystem has expanded along with its assets. However, market sentiment told a different story.
Traders are taking a polarizing stance
Mint glass analysis revealed an intriguing paradox: despite the recent increase in Solana’s price, the market has not responded in kind. The funding rates graph painted a telling picture, illustrating that this spike has led to a sharp increase in negative funding rates. Notably, the negative financing rate on October 20 marked Solana’s highest level in the past three months.
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Moreover, at the time of writing, the negative financing rate had decreased slightly, but was still hovering around 0.0084%. This market position can very well be attributed to the RSI’s own positioning. Now that the RSI is in overbought territory, this could be a sign of an impending price drop.