Given that open interest in SOL perpetual futures has returned to all-time highs in dollar terms, Solana is expected to see significant price action. This is important because significant price movements either upward or downward are frequently preceded by open interest reaching such high levels. 

The total number of outstanding derivatives contracts — such as futures — that have not yet been settled is known as open interest. A high open interest rate usually means that traders and investors are very interested in the asset. Peak levels in open interest indicate that many traders are holding positions that have the potential to increase volatility when they unwind. 

SOL/USDT Chart by TradingView

The recent increase in open interest, from Solana's perspective, is a definite indication that significant changes may be approaching. As traders rush to cover short positions or increase their long positions, accumulated open interest could drive a sizable price rally if SOL breaks through its resistance levels.

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In contrast, there may be a significant sell-off as leveraged positions are liquidated if SOL is unable to sustain its current levels. SOL has since retraced to about $170 after making an attempt to break through the $190 barrier. 

The fact that the cryptocurrency has recovered above important support levels indicates that bullish momentum may yet hold. Given that market conditions stay favorable, the 50, 100 and 200 EMAs are all aligned in a way that suggests a possible upward trend. 

In general, Solana's ecosystem looks pretty strong and may in fact be the go-to pick among cryptocurrency investors. Luckily, there is some traction on Solana on the market, which opens up a way for a potential price reversal.