Solana’s Month-Long Rally Lifts Futures to All-Time High – Is $250 the Next Target?

3 hours ago 13

Popular altcoin Solana has seen its value climb nearly 30% over the past month, fueled by a surge in trading activity.

The rally has been driven by a surge in investor participation, with Solana’s futures open interest now sitting at an all-time high. The spike in futures positions highlights growing conviction among traders that SOL still has room to extend its gains. How true is this?

Solana Open Interest Surges 300% Since August, Rally Momentum Builds

An assessment of SOL’s derivatives market shows its futures open interest at an all-time high of $8.17 billion at press time. Data from Glassnode indicates that the metric has risen with SOL’s price over the past month, climbing more than 300% since August 1.

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Futures open interest measures the total value of outstanding futures contracts that have not yet been settled. When it rises alongside price, new capital flows into the market, and speculative activity grows.

The steady increase in SOL’s futures open interest suggests that its futures traders have been aggressively positioning for further upside despite the broader market’s lackluster performance in August. This trend confirms the bullish momentum behind its rally and raises the probability of a push toward $250.

Furthermore, SOL’s liquidation heatmap shows a concentration of liquidity above its current price, around the $226 level. This reinforces the bullish case for further upside.

A liquidation heatmap highlights price levels where leveraged positions are most vulnerable to liquidation. It tracks clusters of liquidity, with denser zones indicating where many stop-losses or margin calls are likely to be triggered.

When such liquidity clusters appear above the price, they act as magnets for market action. Traders anticipate that upward moves into these zones can trigger liquidations of short positions, creating additional buy pressure.

For SOL, the $226 liquidity pocket suggests that if price advances toward this level, it could set a wave of liquidations that could help drive SOL closer to the $250 mark.

Demand Could Drive Rally to $244 and Beyond

On the daily chart, SOL’s Relative Strength Index (RSI) is 62.92, showing rising demand. The RSI measures an asset’s overbought and oversold market conditions.

It ranges between 0 and 100, with values above 70 suggesting an asset is overbought and due for a dip. On the other hand, values under 30 indicate that an asset is oversold and could witness a rebound.

At 63.59, SOL’s RSI signals that its price has room for more rallies before buyers’ exhaustion sets in. If demand holds, SOL could rally to $244.70. A break above this level would likely push the price to $252.23.