Solana’s $1,000 Dream? Open Interest Blows Up! 💸🔥

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Key takeaways:

  • Bullish technicals suggest that SOL price can reach $1,000 if the resistance between $210-$250 is broken. 🤯

  • Solana’s open interest has rallied to a record high of $13 billion, signaling high speculative interest. 🎯

After dropping to $155 on Aug. 3, Solana’s (SOL) price has recovered over 36% to an intraday high of $210 on Wednesday. Aligning with this rebound, Solana’s technicals now suggest that $1,000 SOL price is still in the cards. 🚀

SOL price technicals target $1,000

Solana’s price action has painted a bullish megaphone pattern on the weekly chart, which may propel SOL to four digits, data from CryptoMoon Markets Pro and TradingView shows. 🤯

A megaphone pattern, also known as a broadening wedge, forms when the price creates a series of higher highs and lower lows. As a technical rule, a breakout above the pattern’s upper boundary may trigger a parabolic rise. 📈

The pattern will be confirmed once the price breaks above the upper trend line around $330, clearing the path for a rally toward the measured target of the pattern at $1,057, or a 400% increase from the current level. 🤯

The relative strength index has increased from 49 to 61 since early August, indicating that the bullish momentum is steadily building up. 📊

SOL price has also broken out of a cup-and-handle chart pattern on the weekly chart, as shown below. The price still trades above the upper boundary of the cup’s handle of the pattern at $160, a confirmation that the breakout was still in play. 🥄

Bulls are now focused on pushing SOL above the cup’s neckline at $250 to continue the rally. 🧠

Above that, Solana’s price could rise as high as $$1,030, based on Fibonacci retracement analysis. 📐

Solana’s weekly chart shows a “bullish multimonth setup, which usually leads to strong moves,” said crypto analyst Gally Sama in an X post on Tuesday, adding:

“Target remains $1000 for $SOL once we break out of this range.” 😂

As CryptoMoon reported, SOL needs a decisive break above $210 to increase the chances of a surge to $260 and later into price discovery. 🚨

Solana OI surges to record high

Solana’s open interest (OI) in futures markets hit an all-time high of $13.68 billion on Saturday, signaling strong speculative interest in the derivatives market. 🤑

Such high demand suggests derivatives traders are betting on SOL’s upward trajectory, potentially amplified by institutional inflows and ETF speculation. 🏦

High Open Interest often precedes significant price moves, as seen between April and July when a 188% increase in OI preceded an over 103% increase in SOL price. 📈

The current rise in OI, alongside a 17% price increase to around $217, coincides with the approval of the Alpenglow upgrade, boosting investor confidence. 🤝

The Alpenglow upgrade, approved with 98.27% support, slashes Solana’s transaction finality from 12.8 seconds to 150ms, boosting throughput to 107,540 TPS. ⚡

This enhances Solana’s competitiveness against Ethereum, potentially driving SOL to new all-time highs in 2025, if institutional adoption and DeFi growth accelerate. 🏆

However, onchain activity tells a different story. Despite Solana’s DeFi ecosystem boasting $12 billion in total value locked (TVL) and leading token launches, network activity has not scaled proportionally with price gains. 🧐

Over the past 30 days, Solana’s transaction count dropped by 99%, signaling diminishing onchain activity that could curtail SOL’s price recovery. 🛑

In contrast, Ethereum transactions increased by 39% during the same period, according to Nansen data. Solana’s number of active addresses also fell 22%, showing decreased network usage. 📉

DEX activity on Solana fell for the third consecutive week, with the weekly DEX volumes falling by  65% to $10.673 billion, according to DefiLlama data. These figures are not particularly encouraging for SOL holders and may be a headwind for any future gains. 🚧

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2025-09-03 19:31