The Chicago Mercantile Exchange (CME) Group, a global recognized exchange of derivatives, has announced that it will launch Solana (Sol) Futures contracts on March 17, awaiting a review by U.S. financial regulators.
According to Feb. 28 announcementParticipants in the market will have access to micro contracts of 25 SOL or a standard contract size of 500 SOL, and all contracts will be cash-settle.
CME Group provides futures’ contracts and options for Bitcoin (Btc) and ether (Eth) to investors looking for a fence against the full -fledged nature of these digital assets.
Adding contracts to Solana’s futures provides traditional financial investors of further exposure to crypto markets and provides crypto markets with fresh injection capital that should support prices.
CME Open Interest with Derivatives Contracts Quarter-by-Quarter 2024. Source: CME GROUP
Related: CME Group report recorded crypto volumes for Q4
Solana’s price responds to the CME futures announcement
Following the announcement of futures products in March, Sol’s price advanced by approximately 17% from around $ 125 to nearly $ 146 on Feb. 28.
Despite this, Sol was on a clear downtrend in February, with prices dropping by approximately 46% since the start of the month from around $ 233 to levels.
SOL is currently trading properly below the 200-day exponential transfer of average (EMA), which is a dynamic and critical support level.
Kamag -child Index Index (RSI) is at 33 and places Sol on the side of Oversold territory – indicating a potential bottom of price.
Solana’s current price action. Source: Tradingview
Crypto markets require fresh capital to resume rally
Lying is in financial markets what is oxygen in a diver, and the lack of fresh capital injection stops the crypto rally that kicks following the President Donald Trump’s reelection In the United States.
Usually, this liquidity drives the price of Bitcoin, which, in turn, flows into large cap altcoins and then smaller-cap altcoins as investors rotate their capital to the risk curve.
According to Master Ventures founder Kyle Chassé, Bitcoin prices have collapsed because hedge funds and institutional investors seeking revenue from the difference between BTC prices and price futures are squeezed out of the trade while price differences are narrow.
Bitcoin needs before, organic buyer Who believes in the asset for uptrend to proceed, compared to institutional consumers pursuing the yield, chassé added.
Unfortunately, this BTC correction may extend in April due to macroeconomic factorsA recent research report from Matrixport found.
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This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
