- Solana hit a new yearly high of $224 on Monday, following a rally of almost 30% the previous week.
- The weekly chart shows the breakout of a bullish pattern; the technical target is a new all-time high of $276.
- SOL’s open interest hit a new all-time high on Tuesday, while its DEX trading volume reached its highest since mid-April.
Solana (SOL) trades slightly lower on Tuesday after reaching a new yearly high of $224 on Monday, driven by a nearly 30% rally the previous week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $276.
On-chain data further supports the bullish thesis as SOL’s open interest reached a new all-time high on Tuesday, signaling a surge of new capital, while its DEX trading volume reached its highest since mid-April.
Solana technical outlook projects a new all-time high
Solana’s weekly chart shows it has broken above the downward-sloping parallel channel pattern at around $210.18 and rallied over 29.25% last week. This pattern is formed by connecting multiple weekly highs and lows with two trendlines (from early March to October). A breakout of this pattern, confirmed by a weekly close above the breakout level, favors the bulls.
As of this week, it continues to rally, breaking above its previous yearly high and forming a new one at $224.
The pattern’s technical target (obtained by measuring the distance between the two trendlines and extrapolating it higher) projects a new ATH of $276.55.
The Relative Strength Index (RSI) momentum indicator on the weekly chart reads at 66, above its neutral level of 50 and still far below overbought conditions, suggesting bullish momentum is gaining traction.
SOL/USDT weekly chart
Solana’s on-chain data further supports the bullish thesis. Coinglass’s data shows that the futures’ Open Interest (OI) in SOL at exchanges is increasing. Increasing OI represents new or additional money entering the market and new buying, which suggests a bullish trend.
The graph below shows that SOL’s OI rose from $2.88 billion on November 5 to $4.54 billion on Tuesday, a new all-time high.
SOL Open Interest chart. Source: Coinglass
Another aspect bolstering the platform’s bullish outlook is a recent surge in traders’ interest and liquidity in the SOL chain. Artemis Terminal data shows that SOL Chain’s decentralized exchange (DEX) trading volume rose from $1.9 billion on Friday to $4.6 billion on Monday, the highest since mid-April.
-638669812549577286.jpg)
Solana DEX trading volume chart. Source: Artemis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.