$SOL SOL’s recent price decline is closely tied to fading demand in its futures market, as reflected by a sharp drop in the annualized rolling basis on three-month contracts.

The annualized rolling basis shows how much more (or less) futures contracts are trading compared to the current spot price, expressed as an annual percentage.

A high basis means futures are trading at a significant premium, signaling bullish expectations and strong demand for leveraged long positions. On the other hand, a low or negative basis means futures are trading close to or below the spot price, indicating a lack of speculative interest or growing bearish sentiment.