Solana Funding Rate Negative for 17 Consecutive Days… Is a Record Short Squeeze Coming?

▲ Solana (SOL)

Solana (SOL) has recorded negative funding rates for 17 consecutive days, facing the strongest bearish bets in two and a half years, and the market is now focusing on the possibility of a short squeeze that could go beyond extreme fear.

According to crypto media outlet NewsBTC on February 15 (local time), Solana posted a 37.38% price decline over the past 30 days alone, making it one of the hardest-hit assets in the downturn. Solana has fully reflected the prolonged selling pressure seen over recent months. In particular, open interest data suggests that investors still hold strong conviction in further downside, heightening market anxiety.

Market analyst Ted Pillows noted that Solana’s market has recorded negative funding rates for 17 consecutive days, indicating that investors have maintained aggressive bearish positions for more than two weeks. He explained that bearish sentiment surrounding Solana has reached an extreme level not seen in at least 2.5 years. This is interpreted not as mere market noise but as a reflection of investors’ sustained and directional conviction toward further declines.

In the current precarious situation, Solana’s next move can be narrowed down to two scenarios. The first envisions continued macro risk-off sentiment and weak spot buying pressure, leading to further price declines. On the other hand, if selling pressure reaches exhaustion and sellers are depleted, a powerful and unexpected short squeeze could occur, sending prices sharply higher.

The fact that Solana’s funding rate has fallen to its lowest level in 2.5 years is widely interpreted as a potential market bottom signal based on past precedents. Historically, excessively concentrated bearish bets have sometimes acted as a catalyst for rebounds. As changes in Solana’s internal ecosystem fundamentals align with movements in macroeconomic indicators, the market is closely watching whether Solana can establish a bottom and successfully rebound.

*Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted for informational purposes only.*