SOL has been a steady roller coaster meandering to the depths of liquidation for past 3 days. Open Interest has been declining--still is as of writing this--and prices are still falling. This indicates liquidation by long traders. This is the mother of all bears. In fact, the ratio of
SOLPERP
vs FTX:SOL0325 vs
SOLUSD
has never been positive since Jan, 22. --A metric I use to assess sentiment. This might be due to 2 reasons; since March 25 is ever so close, it might justify the current slight equilibrium; however, a 0.9% - 1.2% difference between March 25th future and the current spot price seldom has been an indicator of a downward trend . The second and most imperative reason is unfortunately not a favorable topic; the controversy surrounding cryptocurrencies. From Tether's unwillingness to true transparency and accusations of wash trading to the whiff of ensuing regulations. I have a gut feeling that this year might be the last hurrah of Crypto.
Again, this is all speculation...stay safe.
SOLPERP
vs FTX:SOL0325 vs
SOLUSD
has never been positive since Jan, 22. --A metric I use to assess sentiment. This might be due to 2 reasons; since March 25 is ever so close, it might justify the current slight equilibrium; however, a 0.9% - 1.2% difference between March 25th future and the current spot price seldom has been an indicator of a downward trend . The second and most imperative reason is unfortunately not a favorable topic; the controversy surrounding cryptocurrencies. From Tether's unwillingness to true transparency and accusations of wash trading to the whiff of ensuing regulations. I have a gut feeling that this year might be the last hurrah of Crypto. Again, this is all speculation...stay safe.