Solana Open Interest Hits $13B All-time High: Will SOL Price Follow?

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 Cointelegraph 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.

Related: Solana vs. Bitcoin chart points to explosive SOL price breakout to $300

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 Cointelegraph 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.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.