In May 2024, Solana’s price surged past $155, marking a gain of over 25% for the month. This rise comes amidst a broader uptrend in the global crypto market, with major assets like Bitcoin (BTC) and Ethereum (ETH) leading the charge. Solana, along with these mega-cap cryptos, has benefited from this rally.
As of now, Solana is trading around $155, reflecting a substantial 31.9% increase in just the first six days of May 2024. Analysts attribute this ongoing crypto market recovery to positive reports on US economic indicators. But what’s really catching attention is a bullish signal from Solana’s derivatives market, suggesting potential for further price gains ahead.
Solana Derivatives Market Signals Confidence in Continued Price Surge
Investors in the Solana derivatives market are showing increasing confidence in the cryptocurrency’s upward momentum, evidenced by recent trends. Coinalyze’s Open Interest metric, tracking the value of active perpetual futures contracts for Solana, serves as a barometer for investor participation and sentiment.
Solana SOL Open Interest
Since the beginning of May 2024, Solana’s Open Interest has surged by $260 million. Such a substantial increase during a price uptrend typically indicates traders’ confidence in further price appreciation. They are leveraging their positions to potentially amplify profits.
Despite Solana’s impressive 31.9% price surge in May 2024, the $260 million rise in Open Interest represents only a 19% growth. This discrepancy suggests that the rally is primarily driven by organic demand in spot markets rather than speculative trading.
This alignment of bullish market indicators suggests that Solana is well-positioned to maintain strong support levels, even in the face of potential price corrections in the near future.
Solana’s Path to $200: Balancing Bullish Momentum and Key Resistance
Solana’s current trading price sits at $155, but insights drawn from a significant $260 million influx of capital within the first six days of May 2024 indicate that investors are eyeing a further upswing towards $200 in the near future.
Solana SOL Price Forecast
However, reaching this milestone won’t be easy, as highlighted by key resistance clusters identified by Bollinger band indicators. The $158.27 territory presents a major sell-wall that bulls must overcome for a potential retest of $200.
Should bulls manage to break decisively above this barrier, a $200 price target becomes more plausible, in line with predictions. Conversely, if bears attempt to instigate another correction phase, bulls can find temporary support around the $143 20-day SMA price level.
Another factor influencing Solana’s price action is its positive correlation with meme coin markets. Recent months have seen a surge in meme coins like Dogwifhat (WIF), Shiba Inu (SHIB), and Dogecoin (DOGE). If this trend persists, historical data suggests it could further bolster the chances of Solana reaching the $200 mark by the end of May 2024.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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