The Solana Funding Rate fell to a negative value of -0.006% on April 14. This is according to the graph above the lowest rate since November 2, 2023.
The funding rate turning negative after a price drop of 38% in April could signal the end is near. New strategic entrants that missed the Solana price parabolic rally of Q1 2024 may now see this as a perfect opportunity to get in.
This scenario could play out exactly as expected, and fresh demand by newcomers may drive the Solana to a decisive price rebound after it reclaimed $140 on Wednesday morning.
SOL price forecast: all eyes on $170 resistance
Solana’s price is up 9.5% in just 24 hours. If new players take advantage of the signal for low rates, SOL could rise even further to $200.
To validate this bullish forecast, Solana bulls will need to first turn the sell-wall that is looming at $171, which can be seen by the SMA 20-day price indicator.