Somnia (SOMI) Price Crashes 51% as Open Interest Evaporates in Just 48 Hours
SOMI's brutal selloff exposes the fragile foundations of metaverse tokens—when leverage flees, reality bites hard.
Open Interest Collapse
Traders yanked 51% of their positions in two days, abandoning ship faster than crypto influencers delete bad calls. The derivatives market's confidence evaporated—no one's betting big on virtual real estate when real-world margins call.
Liquidity Exodus
Market depth vanished quicker than a bull market's patience. Order books thinned out, amplifying every sell order into a cascade of stop-loss triggers. SOMI's chart isn't just bleeding—it's hemorrhaging credibility.
Broader Metaverse Reality Check
While Somnia promised interconnected digital worlds, traders just discovered their portfolios aren't as interconnected with profits as hoped. Another 'next big thing' learning that in crypto, virtual gains can't pay very real bills.
Somnia Traders Step Back
SOMI’s downturn is strongly linked to the collapse in open interest. Over the past 48 hours, open interest has plunged by 51%, reflecting trader withdrawals amid fears of liquidations. This decline suggests participants are taking risk off the table.
The value of open interest dropped from $116 million to $56 million, highlighting waning confidence among SOMI traders. Such a steep pullback indicates that the rally to the ATH may have exhausted momentum, leaving the token vulnerable to further declines in price.
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Despite the bearish sentiment in derivatives markets, broader conditions appear more favorable. The Relative Strength Index (RSI) remains in positive territory above the neutral 50.0 line. This suggests SOMI still enjoys some degree of underlying market support.
If RSI maintains its position above 50.0, it signals the token could resist deeper losses. While the recent open interest decline is concerning, overall bullish momentum in the broader market could help SOMI stabilize and potentially stage a recovery from current levels.
SOMI Price Can Bounce Back
At the time of writing, SOMI trades at $1.19 after dropping nearly 18% in the past 24 hours. The token is now at risk of slipping below its immediate support of $1.03, which could invite stronger bearish pressure.
Should SOMI lose this critical support, it risks sliding below $1.00 and potentially falling toward $0.57. Such a move WOULD reflect a sharp reversal from its recent highs and confirm bearish dominance in the short term.
However, if the token regains momentum, SOMI could reverse course and reclaim $1.44. Flipping this level into support would open the door for a climb back toward its ATH of $1.90, invalidating the bearish outlook and restoring investor confidence.
