Solana Overtakes Binance Coin as Open Interest Nears All-Time High: What Next for SOL Price?
Will Solana make a new all-time high this year?
Key Takeaways
- Solana surpassed Binance Coin in market cap.
- Open interest in Solana reaches a new high of $1.75 billion.
- Analysis suggests SOL can grow 40% to reach $167.
Solana (SOL) has made headlines by overtaking Binance Coin (BNB) in market capitalization, underscoring the growing interest and confidence in the Solana ecosystem. This is particularly noteworthy as Solana‘s open interest reached $1.75 billion, approaching an all-time high.
This surge highlights increased investor activity and signals a bullish sentiment surrounding SOL’s future potential. As Solana’s price rises and trading volume sees significant upticks, the cryptocurrency community is abuzz with speculation about the future of SOL.
Solana Fundamentals
Recent data from CoinGlass highlights a 108% jump in open interest for Solana, setting a new record at $1.75 billion. This uptick shows heightened investor engagement and enhanced market activity on major exchanges, including Binance, Bybit, and OKX.
Solana‘s rising interest contributes to an overall optimistic trend in the crypto market, initially ignited by Bitcoin’s climb above $50,000. Enthusiasm for Bitcoin tends to positively affect altcoins like Solana. Not only that, but some analysts predict Solana could reach $140, indicating a potential 25% growth from its current price.
In addition, other on-chain metrics indicate a positive sentiment. According to data from TheBlock , Solana’s value moved on chain has reached $37 trillion, the highest point in the last 12 months. In comparison, this metric was only $1 trillion in January.
This is also the case with fees. On January 31, it reached an all-time high of $1.2 million. It cooled off in February, but this number is still high at $522,000.
Solana (SOL) Price Analysis
The price of Solana reached a high of $124 on December 24 last year, coming from a low of $18 in mid-September. As it broke resistance at around $80, it retested it for support on January 22.
This is when the current uptrend started, with the price now $116 and still going upward. We most likely saw a corrective wave four from its December peak to its January low, with its current rise being wave five of a five-wave pattern.
There was a possibility that this move was corrective and another downturn would take place. However, because it has crossed $110, we now expect it to reach a higher high above $125. The next significant zone that can serve as resistance is at $167, our next target.
However, after the uptrend ends, it would mark the compilation of the larger uptrend dating from January, meaning we could see a major correction pushing the price down by a significant amount.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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