If Solana recovers as quickly as it has in recent times, approximately $125 million in short positions will be liquidated.
Solana dropped 5% in a day amid further FTX sell-off concerns, and current trader positions suggest $125 million is in jeopardy if it were to bounce back as it has in recent times.
The price decline comes alongside a 40% decrease in open interest (OI) of Solana’s (SOL) over the last 30 days, down to $1.78 billion on May 9, according to CoinGlass data.
The steep decline in OI typically signals that traders are uncertain about the cryptocurrency and are not confident in taking positions on the asset’s price.