This week, the cryptocurrency market recorded damped volatility as Bitcoin wavers between the $100k and $90k levels. This consolidation trend has stalled the prevailing correction sentiment in most major altcoins, including SOL. The Solana price holding above a confluence of major support signals a potential for a bullish recovery.
According to Coingecko, SOL price currently trades at $184.5, with an intraday loss of 2.5%. The asset market cap stands at $88.5 Billion, while 24-hour trading is at $3.6 Billion.
Key Highlights:
- A renewed uptrend in Solana’s TVL and open interest signals increased adoption and investor confidence if further rally.
- A downsloping trendline drives the current correction in Solana price.
- The $175 support is closely aligned with the 50% Fibonacci retracement level, and the 200-day Exponential moving average creates a high accumulation zone.
SOL Rebounds as Open Interest and TVL See Notable Increases
According to Coinglass data, the SOL futures open interest records a notable surge from $4.38 to $4.96— a 13% increase since last week. Open interest refers to the total number of outstanding derivative contracts that have not yet been settled.
A rise in open interest often suggests increased trader activity, signaling heightened interest and confidence in SOL’s price movements.
In the same period, Solana’s Total volume locked (TVL) records a jump from $8.06 to $8.67 Billion, registering a 7%. A growing TVL showcases increased trust in Solana’s DeFi platforms, suggesting that more users are staking, lending, or providing liquidity within its ecosystem.
Solana Price Correction Hits Key Support
For over a month, the Solana price has witnessed a major correction from $264 to $183, registering a 30% loss. The pullback is currently seeking support at $175, a horizontal coinciding with 50% FIB, 50-day EMA, and an emerging support trendline.
This creates a high area of interest for buyers to recuperate the bullish momentum and drive price reversal. An analysis of the daily chart shows the support trendline has acted as suitable pullback support for SOL since mid-September.
A potential reversal could drive the price 7.8% before a key breakout from the downsloping trendline. A successful breakout will further accelerate the bullying pressure to drive a rally past $300.
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