'Is a negative financing rate always bad news? While you see bears increasing their positions, I see the main force quietly building their positions.'
In the crypto world, emotions often spread faster than data. Recently, the negative financing rate of SOL (Solana) has led many investors to instinctively react with a 'bearish' sentiment: Is it going to drop? Is there big money shorting? Should I run for it first?
However, if you calmly review the data, you might find that this 'negative signal' is not worth panicking over and may even be the starting point for another setup.
❯ Solana is currently the only mainstream coin among the top 10 with a negative financing rate.
Let's first look at the facts: at the time of writing this article, SOL's financing rate is **-0.0002%**. It seems small, right? But its significance cannot be ignored. It means: short sellers are paying interest to the bulls. In a time when the financing rates for the majority of crypto assets are positive (i.e., bulls are footing the bill for bears), SOL's performance indeed appears 'abnormal'.
But abnormal does not mean reversal. Why?
❯ On-chain data is the 'trump card' for determining trends.
The financing rate is merely an emotional indicator of the derivatives market, but what truly reflects the network's health is the on-chain data. The recent on-chain metrics for Solana give a completely opposite signal:
The number of active addresses continues to grow: this is not a panic entry by retail investors, but rather deep participation from long-term users.
Trading volume remains high: network activity is robust, indicating there is still actual demand for applications in the ecosystem.
Holding periods are lengthening: indicating that funds are 'holding steady' rather than 'short-term trading'.
These signals are sending a consensus: Long-term investors are not worried about the current short-term fluctuations, and are even optimistic about the potential for further upside.
❯ 175 dollars has become a key observation point—yet bulls and bears are still in a 'buildup phase'.
From a technical perspective, Solana's price has been fluctuating around the key supply zone of 175 dollars over the past two weeks. This position is not randomly generated; it is a 'trap point' that bears have targeted multiple times, while also being a 'lifeline' that bulls frequently defend.
Since May 9, SOL has failed to effectively break through this resistance level, yet it has not significantly retraced, indicating that the market is waiting for a more convincing signal to determine direction.
And when we extend the time frame, we find that Solana's long-term trend still maintains a structural upward trend. In other words, short-term consolidation does not equal a trend reversal; it may instead be a buildup for the next upward push.
❯ What do truly smart funds look at? It's structure, users, and time!
Many times, surface data can cause anxiety, but what smart money focuses on is the larger logic behind the trend. There have been no obvious negative factors in Solana's current fundamentals; the on-chain ecosystem remains active, with signs of expansion across NFT, DeFi, gaming, and other fields.
The current 'negative financing rate' isn't necessarily a sign of bearish pressure; it may actually be normal bullish-bearish competition within a fluctuating range.
If you don't know how to assess the credibility of on-chain data or how to use technical indicators, then an AI research platform like Mlion.ai might be the 'second pair of eyes' you should consider.
With Mlion.ai's price prediction engine and on-chain data analytics, you can quickly identify which funds are positioning themselves, which on-chain signals indicate potential trend reversals, and which cryptocurrencies are entering the radar of major funds.
You may not understand code or know how to draw charts, but you must understand that beyond emotions, there must be 'hard data' to support decision-making.
❯ Summary:
A brief negative financing rate for Solana does not constitute a medium- to long-term risk signal.
On-chain activity and the behavior of long-term investors indicate a solid network fundamental.
175 dollars has become the key point of contention for both bulls and bears recently.
The long-term structure remains intact, and a breakthrough may be imminent in the short term.
Using AI research tools like Mlion.ai can reduce the risk of 'emotional trading' and provide more rational data support.
When Solana launches a new wave of upward momentum next time, will you miss it because of the negative financing rate? Or will you learn to arm your perspective with AI and become one of the first to spot the opportunity?
Disclaimer: The above content is for information sharing only and does not constitute any investment advice. The crypto market is highly volatile, and investment should be approached with caution; please make judgments based on your own situation.
