How to Make Money Trading SOL During High Volatility

[cryptoenthusiast]

SOL futures annualized funding rate. Source: Laevitas.ch

With Solana’s native token struggling to hold the $80 level, volatility is creating short-term trading opportunities. One strategy is funding-rate arbitrage. Currently, short sellers are paying unusually high annualized funding rates to maintain positions — meaning traders who carefully hedge spot holdings with short futures may collect funding payments while limiting directional exposure. This approach requires strict risk management but can generate yield in choppy markets.

Another method is range trading. SOL has repeatedly failed to reclaim higher resistance levels while finding temporary support near key price zones. Traders can look for oversold bounces near support and take profits near resistance, rather than betting on large breakouts. Given that futures open interest has dropped sharply, leverage should be used cautiously, if at all, as liquidity conditions remain fragile.

[etfs]

range trading makes more sense than praying for a breakout rn. liquidity looks thin and OI drop isn’t exactly bullish.