Solana May Be Beginning a Recovery After Liquidations Reduced Open Interest as Volume and On-Chain Metrics Improve

• Open Interest plunged from $14.83B to $9.81B after liquidations — OI sits near $10.28B.

• Spot volume on Binance fell 62% then rose 10.2% in 24 hours as SOL gained 10.59%.

• Short‑Term Holder NUPL approached June lows and exchange balances show steady accumulation (Glassnode).

Solana recovery: on‑chain accumulation and rising volume suggest a rebound; watch $200–$215 resistance and Bitcoin’s direction for confirmation — read COINOTAG analysis.

Published: 13 October 2025 · Updated: 13 October 2025 · Author: COINOTAG

Has Solana started recovering?

Solana recovery shows tentative signs of resumption: a 10.59% 24‑hour price increase coincided with a 10.2% rise in spot volume and falling exchange balances, indicating accumulation. However, the market needs sustained inflows and a decisive break above the $200–$215 zone to validate a durable uptrend.

Why did Solana’s Open Interest collapse and what does it mean?

Open Interest (OI) fell sharply after a wave of liquidations. CoinGlass reported OI slid from $14.83 billion on 10 October to $9.81 billion on 11 October, with OI at about $10.28 billion at the time of this report. A rapid OI drop typically signals forced deleveraging — short‑term volatility — and resets leveraged positions, which can precede renewed accumulation if spot buyers return.

Liquidations crushed Open Interest

Source: CoinGlass (plain text)

CoinGlass data show that derivatives liquidations triggered a rapid contraction in Open Interest. The shrinking OI reflected large leveraged positions being closed rather than a calm unwind. After such resets, price bounces are common if liquidity providers and spot buyers step in — which, in Solana’s case, coincided with a notable spot volume uptick.

Technically, bulls face a meaningful barrier. Solana tested the $200 level and must clear the $200–$215 zone to re-establish confidence among longer‑term holders. Until that threshold is convincingly cleared and held on higher volume, the recovery should be considered fragile.

Embers of hope for Solana

Source: Jelle on X (plain text)

Analyst Jelle noted that the altcoin market cap produced a large wick during recent volatility but the $1.05 trillion area had not been decisively lost. “The altcoin market cap saw a huge wick due to the recent volatility, but the $1.05 trillion area has not been decisively lost,” Jelle wrote on X, suggesting the potential to reclaim that zone could provide broader altcoin support.

Source: Glassnode (plain text)

Glassnode’s Short‑Term Holder NUPL for SOL fell close to levels last seen in June. While this metric alone does not mark a decisive market bottom, it highlights the depth of the correction and parallels with prior selloffs. At the same time, on‑chain flows show decreasing exchange balances since mid‑July, a sign of accumulation by long holders, and transaction counts have started to trend higher after a multi‑month decline.

Frequently Asked Questions

Is the current Solana rally sustainable after the October liquidations?

Short‑term sustainability depends on follow‑through demand and whether spot volumes and OI trend upward together. Current data show rising spot volume and falling exchange balances, which support a cautious bullish case, but the $200–$215 zone must be overcome on sustained volume for confidence to increase.

How likely is Solana to reclaim previous highs if Bitcoin rallies?

If Bitcoin breaks above major resistance levels (noted near $117k and decisively above $120k), market liquidity and risk appetite typically improve. In that scenario, a coordinated altcoin lift could help SOL challenge and reclaim higher levels, but timing and magnitude depend on cross‑market flows and macro liquidity.

Key Takeaways

• Open Interest reset: Massive liquidations reduced OI from $14.83B to $9.81B, easing derivative leverage pressure.
• Spot signs of accumulation: Binance spot volume rebounded 10.2% as SOL rose ~10.6% in 24 hours; exchange balances have declined since July.
• Confirmation required: A convincing break and hold above $200–$215 and supportive action from Bitcoin are required to label the move a sustainable recovery.

Conclusion

COINOTAG analysis finds that Solana recovery exhibits credible early indicators — rising spot volume, falling exchange balances and improving transaction counts — but remains conditional on broader market strength. Official data from CoinGlass and Glassnode underline a derivatives reset and renewed on‑chain accumulation. Traders and investors should watch the $200–$215 resistance and Bitcoin’s path; a confirmed breakout would increase the probability of a durable rally.