Somnia (SOMI) Price Dips 18% as Open Interest Plunges 51%

Somnia (SOMI) is showing signs of fading bullishness after its recent rally, as the altcoin’s price has dropped sharply from its all-time high. 

The current decline is sparking concerns that SOMI could slip below the $1.00 mark if conditions worsen.

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.

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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.