Why Is Solayer (LAYER) Price Pumping?

A sudden surge like this tends to grab attention even before anyone digs into numbers. Solayer price has jumped more than 40% since yesterday. A crypto enthusiast called Sumon XZ shared data on X that revealed unusual pressure building behind the LAYER token.

The move looked swift, powerful, and backed by real activity rather than random spikes. The article breaks down why there is a sudden surge in Solayer price.

Solayer showed a speed of movement that caught many traders off guard. Solayer price gained 23.89% within 1 hour then picked up another 21.13% within 5 minutes. Sumon XZ noted that the move toward $0.2391 followed consistent buying rather than thin fills. 

LAYER price often reacts sharply when volume pours in from both spot and derivatives at the same time. This rally fits that pattern. The strength of the push suggested that buyers were not hesitating and shorts were not stepping aside fast enough to cool the momentum.

Solayer Token Funding Data Signals Heavy Short Crowding

Funding became one of the biggest clues in this story. LAYER token funding on Gate crashed to –2.0000% which sits far below the common threshold near –0.5%. Sumon XZ pointed out that such a reading usually comes from traders loading up on shorts with unusual confidence. A setup like that creates imbalance. Shorts keep paying high costs to hold positions which exposes them to sudden reversals.

 Solayer price tends to extend quickly when too many traders lean in the same direction. LAYER used that tension effectively during this move as shorts struggled to adjust while price kept rising.

LAYER Price Strength Supported by Open Interest and Liquidity Structure

Open interest added another layer to the breakout. LAYER open interest expanded 45.93% to $10.25M which showed fresh leverage being added rather than positions being closed. Solayer price usually reacts strongly when open interest rises together with price and funding stays negative. The market cap around $181M created an environment where thin liquidity made each wave of buying or short liquidation stretch farther. 

Read Also: New Data Suggests Internet Computer (ICP) Price Is Preparing for Bigger-Than-Expected Move

Sumon XZ noted that order flow favored buyers as takers swept liquidity repeatedly. Shorts attempted to re-enter after each pullback which deepened the imbalance and helped push the LAYER token even higher.

Solayer price pumped because several forces lined up at the same moment. Volume jumped sharply, funding showed heavy short crowding, and open interest expanded instead of cooling off. Sumon XZ helped spotlight these signals which painted a clear picture of why the LAYER token exploded upward.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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