Just a day before the inauguration of U.S president Donald Trump, Solana made its way to a new all-time high at $294.85. Since then the price has been dropping in a falling wedge pattern with the price retracing below $120 in recent times. But, Solana seems to have found it footing over the last few days with the price managing to exit the falling wedge pattern.
The current SOL price performance has ignited a potential bullish rally with a surge above the upper trendline of the pattern likely. But will this altcoin hold its current position and surge moving forward? Waning selling pressure offers hope!
SOL is Primed For a Bullish Rally After Exiting Falling Wedge Pattern
Often, when a crypto experiences lower lows and lower highs with downward-sloping prices, it forms a falling wedge pattern. Based on this, the analysis of the price movement of Solana since mid January 2025 shows that SOL has been on a falling wedge pattern since then. However, the narrowing of the falling wedge towards the current times confirms that selling pressure around Solana is fading away.
Furthermore, the price of Solana has exited this pattern hence teasing a potential bullish rally. Usually, once a cryptocurrency breaks out of the falling wedge pattern, a bullish reversal usually follows. Solana broke out of this pattern on March 19, and since then it has risen by over 13% according to data on TradingView.
To sustain an upward price trajectory, Solana must achieve increased trading volume. But is the sixth crypto by market cap destined to do so?
SOL’s Open Interest Surges Depicting Rising Demand
Open Interest is the total number of derivative contracts, such as futures or options, that traders have not settled yet. A rise in open interest shows that demand is rising. Following the recent price dip of Solana below $120, the open interest also dipped. However, with the coin gracing towards the $140 price level, Solana’s open interest is also surging.
As of the time of this writing, data on Coinglass shows that the open interest of SOL on exchanges is around $4.83 billion. This marks over 20% surge since SOL broke out of the falling wedge pattern eight days ago.
The rising open interest confirms that Solana investors are convinced that SOL will continue trading upwards. A rising open interest with surging prices usually means that there is strong market participation leading to increased demand for the altcoin.
Key Levels to Watch for the Price of Solana
Solana (SOL) is trading at $139.51 showing a strong 13.16% surge since breaking out. After this surge, the price of SOL could surge as confirmed by the rising open interest. With more conviction for higher prices, strong accumulation could push Solana towards the highs experienced before Trump’s inauguration.
In the current market, if Solana manages to hold above the current level, the price could continue to rise towards the resistance at $169.21. A breach of this level could push SOL to the next resistance at $200.31 level or even higher. However, failure to breach the resistance at $169.21 could result in SOL bouncing back towards the support around $112.43 hence invalidating the bullish momentum.
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