- Solana jumped almost 20% during the week, surpassing her rivals.
- Are the “long” leverages positions the sign of a broader structural change?
Without a doubt, the Q2 started with a bullish momentum for Solana (ground), which posted a weekly rally of almost 20%, recovering key supply areas in mid-March.
However, the rally appears far from organic. The derived measures reveal a long -term imbalance pronounced, with more than 70% of the open interest of binance (OO) biased upwards.
As a general rule, such a heavy lever structure, if it is not supported by sustained occasional entries and an absorption of firm submission, increases the probability of a liquidation cascade on any net trace.
In this spirit, Ambcrypto has studied: is it ready for a classic liquidity scan and an average reversion? Or, are the leverage participants in the lead something much bigger?
Strategic positioning behind Solana’s long bias
This week turned out to be crucial for Solana. Now, key developments could prepare the ground for the next phase of its Q2 expansion.
Canada led the charge. The country has launched the first world SOLANA ETF (Stock Exchange) on the Toronto Stock Exchange, marking an important step in institutional adoption.
Meanwhile, Defidevcorp, a notable actor in the decentralized financial space (DEFI), made the headlines by acquiring a value of $ 10.5 million in soil.
In fact, this daring decision has earned them the nickname “Solana’s microstrategy” because their treasure soil now totals 163,651.7 soil – around $ 23 million on the current market.
At the same time, Galaxy Digital seems to quietly strengthen his Solana wallet.
The company withdrew 150,221 additional soil (approximately 19.98 million dollars) from Binance, which has brought its total withdrawals to $ 58 million since April 14.
Consequently, these institutional entries have catalyzed a weekly increase of 20% soil, with open -ended interests (OI) culminating at $ 3.34 billion and recovering resistance levels at the end of March at $ 134.
Source: Glassnode
In the meantime: prevent another draw oi
As shown in the graph above, a long accumulation during the rally of the fourth quarter last year coincided with the $ 294 ATH of Solana in January. Meanwhile, OI reached a peak of $ 6.8 billion.
However, while the feeling of risk has permeated the market in the midst of wider macro pressures, we have seen a lively deterioration event, with OI taking place in the midst of liquidation positions. At the end of the Q1, Oi found himself at $ 2 billion.
For the future, if institutional entries continue to strengthen Solana’s liquidity, this could mitigate the risk of a similar event. What are the chances?
The technical prospects of Solana Q2 remain optimistic, with a significant increase in potential.
Since the recent soil drop at $ 100, more than 200,000 portfolio addresses have been integrated, reporting robust user adoption.
Source: Glassnode
Coupled with an institutional accumulation, long bullish and a growing tide of market optimism, we find a mature moment for “the purchase of the decline”, prepare the ground for a potentially powerful Q2 for Solana.
