Solana Price Prediction: Open Interest Reaches Historic High of $6.48 Billion
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Solana (SOL) Price Analysis and Market Trends:
After a 12% increase last week, Solana (SOL) saw a slight decline on Tuesday, but the overall bullish trend remains strong. Based on on-chain data and the performance of technical indicators, the SOL price may continue its previous upward momentum.
Key Technical Analysis
Price Breaks Downward Trend Line:
The price of Solana broke the downward trend line connecting multiple highs since mid-November last week, indicating a restoration of bullish momentum. After the breakout, the SOL price increased by 4.6%.
As of Tuesday, the SOL price has slightly retreated to around $216.
Support and Resistance Levels:
Support Level: The current key support level is at $206, which is the trend line level at the time of the price breakout, and also where the 50-day Exponential Moving Average (EMA) is located.
Resistance Level: If the price can maintain above the support level, Solana may re-test the daily resistance level of $230.
Technical Indicators:
Relative Strength Index (RSI): The RSI on the daily chart is 56, above the neutral level of 50, indicating that the bullish momentum in the market remains strong.
MACD Indicator: On January 1st, the MACD showed a bullish crossover, further supporting the continuation of the upward trend.
Open Interest (OI): According to Coinglass data, the open interest for Solana futures surged from $4.25 million to $6.48 million in just a few days, setting a new all-time high (ATH). The increase in open interest indicates that new or additional funds are flowing into the market, further validating the bullish sentiment.
Risk Warning
Break Below $206: If the price of Solana falls below $206 and closes below that level, the current bullish trend will be disrupted, and the price may continue to decline, testing the next support level at $201.85.
Currently, the market sentiment for Solana remains bullish, supported by multiple technical indicators and on-chain data. If the support level at $206 holds, Solana is expected to rise further and challenge the resistance at $230. However, if the price breaks below $206, a short-term pullback may occur.
