- Solana’s Open Interest hiked in recent weeks – A sign of rising speculative confidence
- Price action showed a divergence that could mark the start of a recovery
Solana [SOL] has been seeing rising bullish belief in the short-term lately. Its Open Interest climbed to $7.72 billion on 28 May. In fact, this figure seemed to be approaching the $8.57 billion-mark set in mid-January at press time – A time when Solana’s price was setting a new all-time high at $261.
Source: Coinglass
The rising OI trend has been in play since March. SOL has also been on a recovery path since then.
However, even though it rallied from $106 to $182, the altcoin was unable to push past $180 – A level which served as resistance in early March.
Source: Coinglass
The funding rate had been negative over the past couple of days, but it was positive at press time. At the same time, the $152-level, which had been a short-term resistance ten days ago, acted as a support.
Solana bulls have been trying to drive a recovery from this level and at the time of writing, their chances appeared to be good.
Solana bulls prepare to recover recent losses
Source: SOL/USDT on TradingView
On the 4-hour chart, the $152-level was defended. The MFI formed a higher low while the price made a lower low, highlighting a bullish divergence. This divergence saw Solana prices rally by 3.7% in 8 hours, and the H4 session at press time was green too.
Sustained momentum for the altcoin would depend on Bitcoin [BTC]. The OBV was back at its May lows. While it showed some selling pressure over the past week, it also showed that selling volume was not overwhelming.
SOL was trading at its late-April highs, but the OBV has not sunk that deep yet. Combined with the bullish divergence and the Futures data, it appeared that a shift in sentiment could drive a price move towards $180.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
