Rising open interest in SOL futures combined with declining spot price signals new short sellers are entering the market expecting further declines
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
Rising open interest in SOL futures combined with a declining spot price and net outflows of approximately $60.77 million in 12-hour futures flows indicates new short sellers are entering the market. This positioning suggests traders expect further price declines and are willing to add leverage to that thesis.
Divergence between rising leverage and falling spot prices typically precedes forced liquidations that can accelerate downside moves, as underwater shorts eventually get stopped out. This positioning dynamic matters because it reveals whether price declines are driven by organic selling or by traders betting on continued weakness with borrowed capital.
"a net outflow of about $60.77 million is seen in 12-hour futures flows. This makes it possible for further leveraged longs to be forced out in the event of another downward move."
"Notably, open interest in SOL futures rose 3.22% from the previous day, according to data from Coinglass. An increase in open interest, alongside a drop in spot price, typically signals that new short sellers are actively entering the market, hoping for the decline to continue."