SOL, DOGE, ETH Funding Rates Flash Warning for Market: Details

On-Chain Data Shows Declining Demand for Long Positions in Cryptocurrency Market

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According to on-chain analytics platform Glassnode, hourly funding rates for the top five cryptocurrencies (Bitcoin, Ethereum, Solana, XRP, and Dogecoin) indicate a lack of appetite for long positions comparable to the November-December rally. This suggests a subdued demand in the market.

Funding rates reflect market sentiment, with elevated levels implying bullishness and expectations of price increases. Conversely, low rates often indicate bearish sentiments and expectations of price declines.

Glassnode observed that based on the 168-hour moving average of funding rates, most assets, including Bitcoin, showed positive momentum early last week. However, Solana's funding rate has been declining since December.

The cautious stance among traders suggests the market may remain range-bound or experience moderate pullbacks in the coming days.

Market Outlook

The cryptocurrency market faces a pivotal week as investors anticipate the Federal Reserve's meeting and key inflation data releases.

The Fed's monetary policy decision on Wednesday and inflation data on Friday are expected to impact market sentiment. The market is currently under selling pressure as investors lock in profits ahead of these events.

At the time of writing, Bitcoin was down 3.83% in the past 24 hours, dipping to $97,715 during today's session. Solana, Dogecoin, Ethereum, and XRP had similar declines, with losses ranging from 6% to 10%.