Solana‘s price surged by 6% on July 26, aiming to cross the $200 resistance level before August. This rise comes amid a week of volatility in the U.S. markets following the launch of Ethereum ETF funds. After retesting the $165 support level, Solana (SOL) quickly shifted direction, breaking past the $170 resistance and reaching $178 during U.S. trading hours.
Factors Influencing Solana’s Movement
Several elements are expected to impact Solana’s price trajectory, including the open interest in the futures market and the ongoing decline in inflation. These factors are crucial for investors who are closely monitoring Solana’s recovery following a sharp drop earlier in the month.
How Is Solana’s DeFi Sector Performing?
Solana’s decentralized finance (DeFi) sector has shown significant improvement, recovering from a dip from $4.97 billion in May to $4.02 billion in July. In July alone, Solana’s Total Value Locked (TVL) increased by 15%, reaching $5.34 billion. This growth signals an improving market sentiment towards the smart contract token.
Key Insights for Investors
Investors can take note of the following concrete insights:
- Solana’s price is likely to rise further as more assets are locked into its smart contracts.
- An increase of 9% in Solana’s futures open interest over the past 24 hours indicates a bullish trend.
- A golden cross on the daily chart suggests a strong buy signal for Solana.
Conclusion
Solana’s recent price movements and strong technical indicators suggest a bullish trend, with the potential to surpass the $200 resistance level soon. A previous prediction indicated that breaking the $180 resistance could trigger a “fear of missing out” (FOMO), driving the price up to $220 and possibly towards its all-time high of $260. As market conditions evolve, Solana remains a key asset to watch.