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- Solana’s open interest hit a new all-time high, signaling strong inflows of new capital.
- Additionally, DEX trading volume surged to its highest level since April, further supporting the bullish sentiment for Solana.
Ethereum Layer-1 competitor Solana has been in the spotlight while surging to the 4th spot last week amid the SOl price rally to $210 levels and crossing the $100 billion valuation milestone. Over the last week following Donald Trump’s victory, the Solana price has surged by 30%, similar to other altcoins of its league, reported CNF.
On the other hand, the SOL price has given a strong breakout on the technical chart that suggests a bullish pattern breakout as well as the continuation of a rally. This sets the stage for a further rally to its all-time high level of $276.
On-chain data strengthens the bullish outlook as SOL’s open interest hit a new all-time high on Tuesday, indicating an influx of new capital, while its DEX trading volume soared to its highest level since mid-April.
SOL Price Gearing Up for New All-Time High
On the weekly chart, the Solana price has given a breakout above its downward-sloping channel at $210 with its recent rally over the last week. This pattern formation comes by connecting multiple weekly highs and lows with two trendlines. Thus, a breakout above this pattern favors the bulls.
Solana (SOL) continues its rally this week, surpassing its previous yearly high and reaching a new peak at $224. The technical target for the current pattern suggests a potential new all-time high of $276.55. The Relative Strength Index (RSI) on the weekly chart stands at 66, above the neutral 50 level but well below overbought territory, indicating that bullish momentum is gaining strength.
On-chain data also backs the positive outlook. Coinglass data shows that SOL’s futures Open Interest (OI) has surged. The OI has increased from $2.88 billion on November 5 to a record $4.54 billion on Tuesday, signaling new capital inflows and reinforcing the bullish trend, per the CNF report.
Another perspective behind the bullish outlook for Solana is the recent surge in trader interest and liquidity in the SOL chain. Artemis Terminal data reveals that SOL Chain’s decentralized exchange (DEX) trading volume surged from $1.9 billion on Friday to $4.6 billion on Monday, marking the highest level since mid-April.
Will Solana ETFs Take the Price to $1,000?
Following the victory of Donald Trump, the odds of approval for a spot Solana ETF approval have increased with the US SEC likely to undergo a major rejig after the Gary Gensler resignation. Although not immediate, there’s a possibility of approval in the next two years.
Upon approval, we might see a strong liquidity influx into Solana, driving the SOL price to $1,000 thereby taking its market cap to $500 billion.
