Somnia (SOMI) has shown signs of hypertrophic sunnyness after a recent rally as Altcoin prices have dropped sharply from their all-time highs.
The current decline has raised concerns that SOMI could fall below $1.00 if conditions deteriorate.
Somnia traders are retreating
Somi’s recession is strongly linked to a collapse of open interest. Over the past 48 hours, open interest has increased by 51%, reflecting traders’ withdrawal amid fears of liquidation. This reduction suggests that participants were taking risks from the table.
Sponsored Sponsors
The value of the open interest fell from $116 million to $56 million, highlighting the decline among somit traders. Such a sudden pullback indicates that the rally to Ass may have exhausted momentum, making the token vulnerable to further declines in prices.
Want more token insights like this? Sign up for Editor Harsh Notariya’s daily crypto newsletter.
Despite the bearish sentiment in the derivatives market, broader conditions seem to be more favorable. The relative strength index (RSI) remains in the positive region above the neutral 50.0 line. This suggests that Somi still enjoys some underlying market support.
If the RSI remains above 50.0, it indicates that the token may resist deeper losses. While recent declines in open profits have been a concern, the 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 is trading at $1.19 after a near 18% decline in the last 24 hours. Tokens currently risk below the immediate support of $1.03.
If Somi loses this critical support, there is a risk of slides below $1.00 and could potentially fall to $0.57. Such a move reflects a sharp reversal from recent highs, confirming bearish domination in the short term.
However, once the token regains momentum, SOMI can reverse the course and regain $1.44. To support this level, the door to climb towards the $1.90 ATH is opened, negating bearish prospects and regaining investor trust.
