Thus, driven by growing optimism in the market, the price of SOL now seems well placed to face its all-time high (ATH) of $264.
Solana’s open interest reaches new heights
Open interest in the Solana crypto soared 14% in the past 24 hours, reaching an all-time high of $6.68 billion. This rally is occurring in tandem with a spike in SOL trading activity, which has pushed its price up 14% over the past week.
As a reminder, open interest measures the total number of unsettled contracts, such as futures or options. A rise therefore indicates that traders are opening new positions, reflecting increased interest and participation in the market for the asset in question. This rise also points to an influx of capital, signaling growing confidence and demand for the SOL crypto, which could fuel a sustained rally in the price of this altcoin.
This recent spike in Solana’s open interest also coincides with a rise in her social dominance, which is now at a two-month high of 6.92% according to Santiment.
Social dominance reflects how often an asset is mentioned on social media and forums. Thus, an increase in this indicator indicates growing public interest, which is often the cause of an increase in the trading volume of the asset concerned. This increased attention can potentially boost the asset’s price as more investors become involved.
New record high for the Solana crypto?
On the daily chart, the rising Chaikin Money Flow (CMF) of SOL shows a steady increase in demand for this crypto. At the time of writing this article, it stands at 0.04. This indicator measures the flow of money into and out of an asset, and signals increasing demand for the asset when it rises.
-With increasing buying pressure, SOL price could break through resistance at $218.90. A successful passage of this level would then pave the way for a potential return to its all-time high, or ATH, of $264.
On the other hand, if sentiment turns from bullish to bearish, the SOL crypto price could ultimately fall below $200, potentially stabilizing at $188.96.
Moral of the story: A crypto that trades is a crypto that climbs.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
