Solana’s OI Surge
Solana’s Open Interest (OI) surged from $1.71 billion on the 6th of March to $2.88 billion at press time.
Continued Bullish Strength
Solana continued to show bullish strength. Despite market fluctuations, its upward momentum remained strong.
Timing the Market
Trying to catch the exact top could be counterproductive for traders. It’s essential to weigh the risks and rewards carefully.
Bullish Momentum
- Solana [SOL] bulls remained resilient, even when Bitcoin [BTC] faced downward pressure.
- On the 15th of March, SOL surged past $180 despite Bitcoin’s drop below $70k.
Key Metrics
- Data from DefiLlama indicated an 80% surge in Solana’s Total Value Locked (TVL) over the last month.
- Solana also dominated the decentralized exchange (DEX) volume, surpassing Ethereum [ETH] for two consecutive days.
Investment Strategy
Should investors fear a pullback, or look to ride the trend?
While Solana’s major retracement hasn’t occurred since January, indicators suggest overheated conditions.
Technical Analysis
- The Relative Strength Index (RSI) on the daily chart signaled overbought conditions with a reading of 88.
- On-Balance Volume (OBV) trended higher since late January, indicating strong buying volume.
Support and Resistance Levels
Key support levels at $178 and $162 would be critical, indicating a potential shift in momentum if breached.
Resistance overhead was minimal, with $259, $276, and $202 being areas of interest.
Speculative Activity
The Open Interest chart showed no signs of slowing down, reaching all-time highs alongside Solana’s price surge.
Despite extreme greed, short-selling activity remained subdued, suggesting continued bullish sentiment.
