Solana enters a pivotal phase as technical structure and derivatives positioning converge near a major extension level. Recent market data suggests a transition period as traders assess the next directional move.
SOL trades near key Fibonacci levels as wave structure suggests the corrective phase may be close to completion. Funding rates stay neutral while open interest rises, signaling growing positioning without directional bias. Liquidation trends show failed downside continuation, hinting at strengthening market resilience for SOL.
Wave Structure Near a Critical Extension Level
Analyst More Crypto Online stated that Solana has reached the 100% extension level, describing it as the first ideal target for wave c of 4. The price reaction near this level shows a layout that aligns with a typical corrective structure. The broader pattern still reflects a clear A-B-C movement after its prior impulsive rise.
The wave C subdivision carries visible exhaustion signs, supported by sharp wicks around wave (3) and wave (5). The bounce from the 1.0 Fibonacci extension near $144.77 supports the view that this phase is approaching completion. The demand zone between $126 and $138 continues to absorb pressure with repeated recoveries from intraday lows.
A descending trendline remains an important barrier that the market is attempting to reclaim. A steady move above this line opens the door for the first steps of wave 5. Fibonacci projections for the next advance line up toward $159.41 and $165.44 if momentum expands.
Neutral Funding Conditions and Rising Open Interest
Market data shows a stable OI-weighted funding rate, moving very close to the zero mark for weeks. This behavior shows the absence of aggressive long or short positioning. Traders are seen to be apprehensive and maintain balanced exposure awaiting direction confirmation.
Open interest gained 3.46% to open interest of $7.57B, indicating increasing positions. This rise without a funding spike suggests both sides are adding size evenly. Such periods often lead to strong moves when the market finally breaks from consolidation.
A sharp negative funding wick in mid-October shows aggressive short positioning, yet price soon recovered. The quick rebound signals that the event acted as a liquidity sweep rather than a trend break. This creates a foundation for renewed stability in the short term.
Liquidation Activity and Current Market Performance
Liquidation data shows long liquidations at $20.91M against $10.15M in shorts over 24 hours. Despite long-side pressure, the market held firm and avoided sustained decline. This behavior shows that sellers were unable to drive follow-through momentum after the squeeze.
Twelve-hour readings show notable short-side losses at $9.02M, marking repeated failed bearish entries. These reversals often occur when markets approach structural turning points. Increased trading volume of 18.28% and growing options activity point to expanding participation ahead of volatility.
Solana, as of writing, trades at $142.94 with a 24-hour volume of $6.98B. The token gained 2.51% in one day but remains down 8.53% for the week. With funding neutral and OI rising, the market enters a stage where broad positioning sets the backdrop for the next move.