- SOL saw relatively muted interest from traders during the weekend pump
- However, Santiment viewed the slowdown as a bullish signal for the altcoin
Friday’s market recovery saw varied interest from traders Bitcoin [BTC], Ethereum [ETH]And Solana [SOL]. SOL lagged behind others in Open Interest (OI) rates, which track Futures traders’ interest and overall liquidity injection. SOL only saw $1.7 billion in OI, compared to BTC’s $12 billion and ETH’s $5.3 billion.
However, according to Santiment, the slowdown could be a bullish signal for SOL. The crypto analysis company declared,
“However, Solana’s own return above $140 shows very little. Consider this a bullish sign for SOL as euphoric traders look elsewhere.”
Source: Santiment
Speculators positive about SOL
Like the broader market, the weekend recovery pulled SOL out of negative sentiment territory. At the time of going to press, speculators were very positive about the altcoin for the first time since late August.
Source: Santiment
This hinted at strong conviction for further price increases. However, lower timeframe charts suggested otherwise at the time of writing.
In fact, the aggregated Spot Cumulative Delta (CVD) trended lower. This highlighted that SOL’s selling volumes exceeded buying volumes, indicating that short sellers rose as SOL rose to $140.
At the same time, the OI remained flat. This indicated that some speculators had placed short bets on the altcoin this weekend.
Source: SOL/USDT, Coinglass
Additionally, funding rates have fluctuated, illustrating that short bets could derail a strong weekend move above $140.
Despite retail traders’ short bets, smart money on Binance doubled down on long positions. In fact, according to Binance Top Trader Long/Short Ratio, long positions accounted for 60% of all positions.
While this showed strong belief in SOL’s upside potential, it could also mean hedging spot positions.
Source: Coinglass
SOL was valued at $137 at the time of writing, up 7.5% in the past seven trading days after hitting a monthly high of $139.8.
Overall, next week will be action packed for the altcoin. Aside from the expected bullish pivot from the Fed rate cuts on September 18, Solana’s BreakPoint 2024 event could further boost the token.
The event will be held in Singapore from September 20 to 21 and is usually associated with a price rally. Special as insiders often reveal the latest updates from the Solana ecosystem.