Solana's Active Addresses Rise Despite Negative Funding Rate

Solana (SOL) has shown resilience in the face of recent market fluctuations, maintaining a bullish long-term outlook despite a slight dip in its funding rate. The funding rate, an essential indicator reflecting sentiment in derivatives markets, has dipped to -0.0002%, suggesting that short sellers are subsidizing long positions, creating a mildly bearish sentiment. This trend is notable given the general positive or neutral funding rates observed in other cryptocurrencies.

Despite the negative funding rate, on-chain metrics indicate a positive trend for Solana. The number of active addresses using the network has steadily increased, showcasing persistent engagement from users and investors. This growth signifies confidence in the network’s long-term viability and its ability to sustain price growth even in the face of speculative short positions.

Technically, Solana’s price has been consolidating around the $175 level for the past two weeks, a significant supply zone where bearish activity has increased. This price level has witnessed numerous sell orders, accompanied by heightened trading volumes. Despite several attempts to break through this resistance, SOL’s price continues to oscillate in a congested pattern, indicating that both bulls and bears are awaiting concrete indicators for their next moves.

Despite the negative funding rate and resistance levels at $175, Solana’s broader market structure appears bullish. Analysis of SOL’s price action over longer periods supports the notion that bullish momentum remains strong. The increase in activity from long-term investors reaffirms this bullish sentiment. Though caution is warranted regarding short-term fluctuations, the outlook for SOL remains favorable for potential upward price movement.

In summary, while Solana’s funding rate presents signs of short-term corrections, other indicators, including active addresses and market consolidation, remain solidly in its favor. This nuanced data implies that long-term holders can remain optimistic, as the overall market structure continues to support potential gains for SOL.