Basic Points:
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Solana made the $ 140 level of support for a week, first in more than two months, featuring the growing confidence of entrepreneurs.
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The Sol Futures Open Interest hit $ 5.75 billion on April 30, showing strong institutional interests.
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With the increase in DEX volume and a $ 9.5 billion TVL, Sol could have hired $ 200 before a potential ETF approved on October 10.
Solana's native token Sol (Sol), fell to 4% between April 29 and April 30 after failing to maintain a level of $ 150. Despite this short -term denial, entrepreneurs seemed more confident because $ 140 support remained intact for a whole week, an outcome that had not happened for two months.
As a demand for SOL's leveraged positions reached near Record Highs on April 30, entrepreneurs again consider the chances of a Sol rally of over $ 200.
Sol Futures open interest rose 40.5 million Sol on April 30, marked a 5% increase from last month and approaching all the time high. In terms of dollars, it represents $ 5.75 billion in positions in futures, which ranks third in the cryptocurrency market and more than 50% higher than demand for XRP derivatives. The strong adoption of Sol Derivatives points to the growing interest in the institutional.
Data shows increased demand for bearish leveraged sol positions
Entrepreneurs often believe that the increase in demand for solo futures signals are rising optimism. However, since Longs (buyers) and shorts (sellers) are always corresponding, increasing open interest does not necessarily indicate a bullish perspective. To better understand the leverage demand in Sol Futures, one can view the funding rate for eternal contracts.
Currently, the SOL funding rate of eternal futures is negative, showing greater demand for bearish positions. The last period of moderate optimization ended on April 25 after a failed attempt to break above $ 156. The lack of bullish leveraged position may be partly due to the 43% of the price obtained by Sol from three weeks from April 8 to April 29th.
A $ 200 target for Sol may seem ambitious, but the token traded near $ 195 in mid -February, even after the decentralized volume of application dropped 80% from their peak of January. While Solana is facing criticism for heavy hopes of Memecoins, there is more network than just the expectations of new tokens.
Solana's second rank in the total amount locked (TVL), with $ 9.5 billion in deposits, including liquid staking, collateralized loans, automatic yield platforms, and synthetic derivatives. Many Solana decentralized applications are among the leading costs, with Meteora's collection of $ 19.1 million in seven days, followed by pump-fun with $ 18.6 million and Juto with $ 14.6 million.
Solana Network manages volumes in decentralized exchange
Since April 14, the average base layer of Ethereum base transaction has been $ 0.65 or less, yet Solana's decentralized exchange has seen almost 90% of the higher trading volume. Even with the entire Ethereum Layer-2 ecosystem, Solana led the past week with $ 21.6 billion in decentralized exchange activity.
Positive highlights from the Solana network include an 87% weekly increase in Raydium volume and a 58% increase in Meteora activity. Thus, although the demand for bullish leveraged positions remains flat, Sol's price may eventually reflect the improved onchain metric.
Related: More than 70 US Crypto ETFS awaits the SEC's decision this year
From a trading perspective, Sol will also benefit from the possible approval of a Solana ETF area in the United States. Analysts believe that the final deadline for the US Securities and Exchange Commission's decision is October 10, with a 90% opportunity to approve. However, Sol could rally above $ 200 before this event, as the network was properly positioned to attract new retail investors.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
