Why SOL Could Surpass $200 This Week: Key Factors Driving Growth
Solana Price Surge: Aiming for New Heights as Open Interest Hits Record Levels
Solana’s Impressive Weekly Gains
Solana (SOL) has shown remarkable performance this week, with its price climbing over 15% and currently trading above $183. This upward trend is bolstered by a significant increase in investor confidence, as evidenced by the soaring Open Interest (OI) in SOL derivatives.
Record Open Interest Signals Investor Confidence
Recent data indicates that Solana’s Open Interest has reached an unprecedented $9.71 billion, a substantial rise from $7.78 billion at the beginning of the week. This surge in OI suggests that fresh capital is entering the market, which could further propel the ongoing price rally of Solana.
Total Value Locked (TVL) on the Rise
According to insights from DefiLlama, Solana’s Total Value Locked (TVL) has been on a consistent upward trajectory since late June, now standing at $9.87 billion. This level of TVL has not been observed since early February, highlighting increased activity and interest within the Solana ecosystem as more users engage with its protocols.
Price Forecast: Solana Bulls Targeting $200
After breaking through the daily resistance level of $160 on Sunday, Solana’s price has continued to rise, nearing the next resistance point at $184.13. Should SOL manage to close above this threshold, it could potentially extend its rally towards the February high of $205.34.
Technical Indicators Favor Continued Growth
The Relative Strength Index (RSI) currently indicates a reading of 73 on the daily chart, suggesting that the asset is in overbought territory, yet still exhibiting strong bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) has maintained a bullish crossover since late June, with increasing green histogram bars above the neutral line, reinforcing the notion of growing bullish sentiment.
Potential Correction Levels
In the event of a market correction, Solana’s price may find support around the daily level of $160, providing a potential cushion against further declines.
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