Solana Whale Nets $2.94M as Funding Rate Turns Bearish

  • Whale earns $2.94M profit from liquid staking via the JitoSOL strategy.
  • Solana funding rate diverges from peers, hinting at cautious sentiment.

Solana (SOL) remains the only top 10 cryptocurrency, excluding stablecoins, showing a negative funding rate. According to Glassnode, Solana has posted a funding rate of -0.0002%, the only negative figure among the top 10 non-stablecoin cryptocurrencies. 

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Source: Glassnode

While the value is small, it indicates rising short-side activity in the futures market. Funding rates reflect the cost of holding positions and help assess trader sentiment. In contrast, Bitcoin and Ethereum maintain favorable rates, suggesting more confidence from long-position holders.

This emerging short bias comes despite Solana’s current trading price of $175.88, only down 0.92% over the past 24 hours. The 7-day cost basis still shows a mild 0.64% gain. 

Analysts note that such short-side funding pressure, when not backed by significant price drops, may reflect cautious positioning rather than outright bearishness. 

Whale Activity Highlights DeFi Confidence Through Liquid Staking

On May 27, Onchain Lens reported that a major Solana whale deposited 11,445 SOL, worth $2.01 million, into Binance. This followed a year of liquid staking activity. The whale had initially withdrawn 30,000 SOL, then valued at $2.95 million, and staked it via JitoSOL. The investor now holds 18,290 JitoSOL, valued at $3.87 million.

This transaction earned the whale a profit of $2.94 million, signaling a successful yield strategy using liquid staking. JitoSOL allows investors to earn staking rewards while maintaining token liquidity.

The continued holding of JitoSOL, even after realizing profits, suggests strong confidence in the Solana ecosystem and its DeFi potential. Analysts point to such whale behavior as a signal of long-term positioning, rather than short-term speculation.

Technical Indicators Show Bullish Momentum Despite Funding Rate Divergence

Solana’s price action shows resilience, recovering from April lows of $95.35 to current levels above $178.13. The asset has broken above its 20-day moving average, now acting as a support zone. Bollinger Bands show moderate volatility, with price movements hugging the upper band, a sign of ongoing bullish momentum.

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SOL/USD 1-Day Price Chart Source: TradingView

The MACD remains above its signal line, confirming a positive trend. At the same time, the RSI stands at 61.37, suggesting that the asset is not overbought. These indicators point to continued potential for price growth. Resistance is expected near the $180 to $190 range. Traders are watching for any signs of consolidation or reversal if volatility increases.

Despite short-side futures pressure, Solana’s on-chain data remains strong. Supply in profit stands at 76.1%, and daily active addresses total 6 million. On-chain volume over the past 24 hours was $3.5 billion, with futures open interest at $4.5 billion. These metrics support a narrative of solid user engagement and market participation.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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