Solana Price Surge: Fresh Buyers Fuel 14% Move in Crypto Market
Solana (SOL) Price Surge: Key Indicators Suggest Continued Growth
Solana (SOL) has experienced a notable increase of over 14% in the last week, reaching approximately $190. Despite this impressive rise, the cryptocurrency remains about 35% below its peak value of $260.
To advance further, SOL must first overcome the significant psychological barrier at the $200 mark. While price movements are crucial, additional insights from on-chain metrics and derivatives data suggest that this upward trend may be just beginning.
SOPR Metrics Indicate Positive Market Sentiment
A strong indicator of investor confidence is the Spent Output Profit Ratio (SOPR). This metric reveals whether sellers are realizing profits or incurring losses when they sell their SOL holdings. A SOPR value above 1 indicates that sellers are profiting, while a value below 1 suggests they are selling at a loss.
In recent weeks, SOL’s SOPR has fluctuated but has consistently rebounded alongside price increases. This pattern of “resetting” is a healthy sign, indicating that short-term profit-taking is occurring without disrupting the overall upward trend. Historically, periods where SOPR hovers near 1 have often preceded price increases.
For example, on June 27, the SOPR dipped to 0.97, and within three days, SOL’s price surged from $142 to $154. Similarly, on July 19, the SOPR fell to 1.007 while SOL was priced around $177, and just two days later, it surpassed $190.
Currently, the SOPR is around 1.02, suggesting that most sellers are still in profit and are not eager to sell, which typically indicates that holders anticipate further price increases.
Derivatives Market Remains Stable
Supporting the SOPR findings, the funding rate and open interest data in the derivatives market show no signs of overheating. Solana’s funding rates are slightly positive, sitting at approximately 0.0152. This level indicates bullish momentum without raising concerns about excessive leverage in the market.
When funding rates become excessively high, it often signals that too many traders are over-leveraged on long positions, increasing the risk of a market correction. Fortunately, that is not the case at this time.
Moreover, open interest has surged past $9.52 billion, marking the highest level seen in months. This increase in open interest, coupled with rising SOL prices, indicates that new capital is entering the market, with traders betting on further price appreciation rather than merely riding an existing trend.
Solana’s Price Structure Suggests Potential for $218
Currently trading at $190, Solana has successfully converted previous resistance levels of $183 and $184 into support. However, significant resistance remains at the $196, $198, and $199 levels.
If SOL can establish the $196–$199 range as support, the next major resistance level is anticipated around $218, representing an increase of nearly 14.7% from current prices.
As long as the SOPR remains stable near 1 and open interest continues to rise without excessive funding rates, bullish sentiment is likely to persist. While a minor correction could occur, a drop below $168 could jeopardize the short-term bullish outlook. A decline beneath $161 would significantly weaken the overall price structure, although such a scenario appears unlikely given the prevailing positive market sentiment.
Disclaimer: This article is intended for informational purposes only and should not be construed as financial or investment advice. Market conditions can change rapidly, so it is essential to conduct your own research and consult with a financial professional before making any investment decisions.
