Solana's recent market performance has raised eyebrows as it experiences a prolonged negative funding rate, signaling a bearish outlook among traders. According to the authors of the publication, it is concerning that this trend, lasting for 17 consecutive days, highlights the growing concern over the cryptocurrency's price trajectory.
Negative Funding Rate and Bearish Sentiment
The negative funding rate indicates that traders are heavily positioned for further declines in Solana's price. Market analyst Ted Pillows points out that this sustained bearish sentiment reflects a strong conviction among traders regarding the future direction of the asset.
Implications for Price Recovery
As the cryptocurrency futures markets continue to show this trend, it raises questions about the potential for a price recovery. The ongoing negative funding rate suggests that many investors are betting against Solana, which could lead to increased volatility in the near term.
Recently, Solana's market struggles have coincided with a notable incident involving Binance founder CZ unfollowing Solana co-founder Anatoly Yakovenko on Twitter, raising eyebrows in the crypto community. For more details, see read more.
