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Solana's open interest in futures contracts fell by 30% in May as investors lost confidence in the altcoin's upward momentum. With the price currently hovering near $80, analysts suggest the cryptocurrency could face further downward pressure, potentially testing the $68 level. This decline reflects broader market uncertainty, with altcoins struggling amid a bearish sentiment that has dominated crypto markets in recent weeks.
The drop in open interest signals reduced speculative activity, which often precedes price corrections. Traders are closely watching whether Solana can stabilize above key support levels or if the broader altcoin slump will accelerate. For the market, this development highlights the fragility of risk-on sentiment in crypto, particularly as macroeconomic concerns persist.
Investors should monitor Solana's price action around $68 and $70, as these levels could determine the next phase of its trend. Broader market indicators, including Bitcoin's performance and macroeconomic data, will also play a role in shaping altcoin trajectories. A sustained break below $68 could trigger further selling pressure.
