Solana price rallies as open interest surges ahead of SBF trial

October 02, 2023 11:05 AM AEDT | By Invezz

Solana price rallies as open interest surges ahead of SBF trial — Image source: Invezz

SOL open interest surges

Solana price has been in a strong bullish trend in the past few weeks as demand for the token has jumped. At the same time, data in the futures market shows that Solana’s open interest has jumped in the past few days.

Open interest rose to $328 million on Monday, the highest level since August 15th of this year. It has peaked from a low of $209 million on September 2nd. Most of this open interest is in Binance, has risen to over $132.9 million. It is followed by Bybit. OKX, Bitget, and dYdX.

Open interest is an important metric observed by investors and traders. It is a number that shows the number of outstanding derivative contracts for an asset that has not been settled. A higher figure is usually a positive sign.

Solana price has jumped ahead of the upcoming Sam Bankman-Fried trial, which I wrote about here. The trial is important for Solana since it was one of the biggest holdings by FTX and Alameda Research. FTX is considering liquidating some of its liquid assets, including Solana as it aims to refund its customers.

Meanwhile, Solana price has jumped as the total value locked (TVL) in DeFi has jumped sharply in the past few months. The TVL has soared to over $1.15 billion in the past few months. Stablecoins in the ecosystem stands at over $1.58 billion. The biggest assets in the ecosystem are SPL Governance, Streamflow, Marinade Finance, and Lido.

Most importantly, Solana price rose after Washington passed a short-term spending bill that prevented a government shutdown.

Solana price forecast

The daily chart shows that the SOL price has staged a strong comeback after plunging to a low of $17.23 on September 11th. It peaked at $24, the highest level since August 15th. The coin has jumped above the 50-day and 100-day exponential moving averages (EMA) while the Relative Strength Index (RSI) has jumped to the overbought level of 80.

Therefore, the outlook for Solana is bullish, with the next level to watch being at $26.15, the highest point in January, March, and April. A move above this resistance will see it jump to a high of $32.32 (July 14th high).

The post Solana price rallies as open interest surges ahead of SBF trial appeared first on Invezz.

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