Solana’s surge gathers pace after the revelation of Solana-Bitcoin cross-chain integration
Solana (SOL) has experienced a surge in bullish momentum following the news that the Zeus Network intends to connect it with the Bitcoin blockchain.
At the time of writing, SOL is trading at $129.9, marking a 4% increase in the past 24 hours. The asset’s market cap has exceeded $58 billion, with a daily trading volume of $4.1 billion.
Data provided by Santiment reveals that the total open interest for SOL has consistently decreased over the past 10 days, dropping from $1.63 billion on April 22 to $1.35 billion currently. This decline in open interest could indicate reduced price volatility and liquidations.
Additionally, market intelligence platform data indicates that the ratio of long to short trading positions on Binance has halved since April 29, coinciding with the downward momentum of the SOL price. This suggests an increase in trading contracts betting against a price hike.
Santiment’s Relative Strength Index (RSI) for SOL has risen from 43 to 50 in the past 24 hours. This indicates that the asset is neither undervalued nor overvalued at its current price due to the bearish market conditions.
To maintain its bullish position, SOL’s RSI would need to remain below the 50 mark. An RSI above 50 could imply higher price volatility and potential manipulation by large investors or “whales.”
The optimistic sentiment surrounding SOL stems from the announcement by Zeus Network, which aims to make Solana “the Layer 2 solution for all blockchains” using the Zeus Program Library (ZPL) and assets powered by the permissionless communication layer. Essentially, users would be able to convert assets like BTC into a ZPL-Asset, such as zBTC, and gain access to the Solana ecosystem.
In other news, Tether has reported a record profit of $4.5 billion in the first quarter.
