Solana’s open interest has surged to nearly $2.42 billion, indicating strong bullish sentiment. The rising open interest suggests increased trading activity and potential price gains for SOL.
Points
- Solana’s open interest reaches $2.42 billion
- Increased trading activity and new money in contracts
- Bullish signals from futures market data
- SOL price prediction and technical analysis
- Potential for SOL to reach new yearly highs
The Solana （SOL） ecosystem continues to impress as its open interest （OI） approaches a yearly high of $2.42 billion. Open interest refers to the value of outstanding contracts in the futures market, and its rise indicates increased trading activity and new money entering the market.
Historical data from Santiment shows that Solana’s OI peaked at $2.66 billion in March. Rising OI is typically a bullish indicator, suggesting that traders are placing new bets on the cryptocurrency. Since July 13, Solana’s OI has gained nearly $1 billion, reflecting growing confidence in the token.
At the current value of $2.42 billion, SOL’s price is poised just below its yearly high. This week, the price has climbed over 10%, mirroring the bullish pattern observed in March when SOL surged above $200. If this trend continues, Solana could retest and potentially surpass its yearly high.
Liquidations data also supports this bullish outlook. In the last 24 hours, total SOL liquidations amounted to $8.52 million, with shorts accounting for over 60%. This indicates that many traders who bet against SOL are closing their positions, contributing to upward price pressure.
According to technical analysis, Solana has broken out of its descending trendline, signaling a shift from bearish to bullish momentum. The formation of a golden cross, where the 50 EMA crosses above the 200 EMA, further supports the bullish case. Currently trading at $178.58, SOL shows potential to rally beyond $190
in the short term. The positive momentum and technical indicators suggest a strong possibility of Solana continuing its upward trajectory.
Crypto analyst Ali Martinez has drawn parallels between the current market structure and the patterns observed in July 2021, just before SOL embarked on a significant rally. Martinez predicts that if these patterns hold, Solana could potentially reach $1,000 before the end of this cycle.
In the short term, maintaining support above the short-term EMA is crucial for sustaining the bullish outlook. Should SOL dip below this level, it may face a pullback to $170.61. However, given the current market conditions, the outlook for Solana remains optimistic, with the potential for substantial gains ahead.
Explanation
- Open Interest （OI）: The total value of outstanding derivative contracts, such as futures and options, that have not been settled. A rise in OI typically indicates new money flowing into the market.
- Liquidations: The process of closing a trader’s position because they cannot meet the margin requirements. This often happens when the market moves against the trader’s position, leading to forced selling or buying.
- Golden Cross: A bullish technical pattern that occurs when a short-term moving average crosses above a long-term moving average, indicating upward momentum.