- Solana has risen almost 20% in the week and surpasses its rivals better.
- Are livered “long” positions a sign of a broader structural shift?
Undoubtedly Q2 started with Bullish Momentum for Solana [SOL]who has posted a weekly rally of almost 20%, which reclaims the most important supply zones from the mid -March.
However, the rally appears far from organic. Derivatives statistics Unveiling a pronounced long balance, with more than 70% of Binance Open Interest (OI) skewed to the top.
Usually such a liver-heavy structure, if not substantiated by persistent spot inflot and fixed bid-side absorption, increases the chance of a liquidation cascade on a sharp retracement.
With that in mind, Ambcrypto investigated: is Sol primed for a traditional liquidity swing and average reversal? Or are the participants on the front of the front participants something much bigger?
Strategic positioning behind the long bias of Solana
This week turned out to be crucial for Solana. Now, Important developments Could determine the stage for the next phase of the Q2 extension.
Canada led the leadership. The country launched the world’s first place Solana ETFs (listed funds) at the Toronto Stock Exchange and marked an important step in institutional acceptance.
In the meantime, Defidevcorp, a remarkable player in the decentralized financial (Defi) space, achieved the headlines by acquiring $ 10.5 million in Sol.
In fact, this daring movement has given them the name ‘The MicroStrategy of Solana’ as their Sol Treasury Now tall 163,651.7 Sol – about $ 23 million in the current market.
At the same time, Galaxy Digital Solidjes seems to strengthen his Solana portfolio.
The company has withdrawn an extra 150,221 Sol (approximately $ 19.98 million) from Binance and their Total recordings Up to $ 58 million since 14 April.
That is why this institutional inflow has catalyzed a weekly increase of 20% in Sol, with Futures Open Interest (OI) that a peak of $ 3.34 billion and reclaiming resistance levels in the late mother at $ 134.
Source: Glassnode
Looking ahead: prevent another OI recording
As can be seen in the graph above, the long accumulation during the Q4 meeting last year coincided with Solana’s $ 294 ATH in January. During this time Oi reached a peak of $ 6.8 billion.
Since the risk-off sentiment penetrated the market in the midst of wider macro print, we saw a sharp delevant event, in which OI relaxing in the midst of liquidation positions. Towards the end of the first quarter, OI was withdrawn to $ 2 billion.
Looking ahead, if institutional inflow continues to strengthen the liquidity of Solana, this could reduce the risk of a comparable event. What are the opportunities then?
Solana’s Q2 Technical prospects Bullish remains, with considerably upward potential.
Since the recent dip from SOL to $ 100, more than 200k new wallet addresses on board have been on board, which indicates robust acceptance of the users.
Source: Glassnode
In combination with institutional accumulation, bullish lungs and an increasing tide of market optimism, we find a mature moment for “dip-buying”, set the stage for a potentially powerful Q2 for Solana.
