đ Solana (#SOL ) Eyes $200 Breakout: Key Factors to Watch
Solana (SOL) has been on a tear, recording a 12% price surge in the past week. The altcoin currently trades at $170.16, just below the crucial $171 resistance level. If it maintains its momentum, Solanaâs price may break through this resistance during the current trading session.
A successful breach would open the door for a further rally, with the next major hurdle at $186.32. If SOL can overcome this resistance, it could reach the $200 mark. But how soon can this happen?
đž Solana Sees Spike in Activity
Solanaâs key momentum indicators, assessed on a one-day chart, confirm the recent surge in the demand for altcoin. For example, its Relative Strength Index (RSI), which tracks its overbought and oversold market conditions, is in an uptrend at 68.50.
This indicatorâs values range between 0 and 100, with values above 70 suggesting that the asset is overbought and may soon witness a correction. Values below 30 indicate an oversold condition and hint at a possible rebound.
SOLâs current RSI signals that the market has seen sustained buying pressure, which is driving the price higher. However, while not technically in overbought territory, the asset is close, which could mean that the price could face selling pressure soon.
Nevertheless, over the past few days, Solanaâs Open Interest has skyrocketed. As of this writing, it sits at $2.31 billion, having risen 29% since October 18. It currently sits at its highest level since August 1.
An assetâs open interest measures the number of outstanding derivative contracts (futures or options) that are currently active and have not been settled or closed. When it rises along with an assetâs price, it signals that the uptrend is strong and backed by significant market participation.
