Solana Price Forecast –Speculative Traders Could Push SOL to $150

Solana Price Insights:

• Solana (SOL) price continues to hold firm above the $110 resistance and the market buzz surrounding megacap altcoins cooled this week.  
• Aggregate Funding Rates for SOL across derivatives trading platforms show that bullish traders are paying record fees to keep their LONG positions.  
• Based on the historical correlation between Solana Funding Rate and price action, investors anticipate upward movement in the days ahead. 

Solana (SOL) price entered blistering a 18% rally on Christmas day, but the rally has since tapered off. A vital derivative trading metric provides insights into the overall sentiment among Solana speculative traders.

Can Solana enter another leg-up toward $150 territory before 2023 slams shut.

Bullish Speculative Traders Paying Record Fees to Keep Their SOL LONG Positions 

Solana (SOL) blistering price performance on Christmas day, saw it overtake Avalanche (AVAX) as the best performing mega-cap altcoin in the top 20 crypto market rankings in the 14-day timeframe. This comes after SOL has overtaken BNB and XRP respectively in terms of market capitalization. 

Unsurprisingly, speculative traders continue to doubled down on their bullish stance despite a 13% pullback from its Christmas day peak. 

Rather than throw in the towel, SOL bulls have regrouped to defend the $110 support over the last 48 hours. 90-day peak. Indicatively, the Santiment chart below illustrates that, SOL Funding Rates hit a 90-day peak of 0.06% on Dec 26. 

The Funding Rate is a derivatives trading metric that shows the cost associated with holding a perpetual futures contract position. 

In simple terms, rising positive values of Funding rate for an asset means that LONG position holders (bulls) are making periodic payments the bears to keep their bullish contracts open. 

Solana funding rate increasing amid the ongoing price pullback is an indication that the dominant expectation in the derivatives market is for SOL spot prices to flip bullish again. 

Also, increased funding rates is prime indicator that speculative traders are highly-leveraged. Hence they are willing to pay top-dollar to prevent liquidations. In effect, highly-leveraged speculative traders are incentivized to make rapid spot purchases to defend their SOL derivative positions.

If this scenario plays out it could supercharge short-term market demand and give Solana price a boost toward the $150 range.