Solana Price Overcomes Major Resistance While Futures Open Interest Approaches AllTime High
Solana’s price experienced a significant bullish breakout on Monday, with investors adopting a risk-on sentiment in anticipation of the Fed’s decision and key earnings reports.
The price of Solana (SOL) surged to a peak of $193, marking its highest level since April 1st. External data indicates that the crypto fear and greed index climbed to 63, entering the greed zone, reflecting investors’ increased appetite for risk.
Additionally, Solana rallied as futures open interest continued to recover. According to CoinGlass, open interest reached $3.25 billion on Monday, its highest level since April 1st when it hit an all-time high.
The robust open interest, which had previously dropped to $1.77 billion amid a cryptocurrency price decline earlier this month, suggests strong demand for the asset, indicating potential for further price increases.
Notably, Solana is not the only cryptocurrency witnessing heightened open interest in the futures market. Bitcoin (BTC), the largest coin in the industry, also recorded a record open interest on Monday following endorsements from Donald Trump and Robert Kennedy.
Solana boasts strong fundamentals, with data showing a significant increase in ecosystem fees to $2.13 million in the last 24 hours. Participants in Polymarket anticipate that Solana will generate higher fees than Ethereum in a single day this month.
The ecosystem has also seen a rise in active addresses, surpassing 1.22 million, while key networks like Jito, Marinade, and Kamino are experiencing increased demand.
Technically, there are indications that Solana’s breakout is legitimate. The token found strong support at $120.50 on the daily chart and has broken above the upper boundary of a symmetrical triangle pattern, signaling a bullish pennant continuation pattern.
Solana has also surpassed the crucial resistance level at $188.20, its highest point in May this year. As a result, the token may continue its upward trend as buyers aim for the year-to-date high of $210.15.
Looking ahead, the upcoming week will see several macroeconomic factors that could impact Solana’s prices. Companies like Franklin Templeton and Blackrock may submit Solana ETF documents to the Securities and Exchange Commission, while the Federal Reserve is expected to signal interest rate cuts at its September meeting, benefiting risk assets like Solana and Cardano (ADA).
Additionally, major US companies such as Amazon, Microsoft, Meta Platforms, and AMD are set to release their financial results, which could influence market sentiment following last week’s mixed earnings reports that led to a decline in US equities and some cryptocurrencies.
