Key takeaways
- Solana slipped 1.4% and is trading above $230.
- The coin could reach a new all-time high as on-chain and derivatives metrics turn positive.
Solana rally could be driven by positive on-chain and derivatives data
SOL, the native token of the Solana blockchain, has gained 11% over the past seven days, making it one of the stronger performers among the top 10 cryptocurrencies. The recent rally pushed SOL above the $230 mark, and analysts are now forecasting fresh highs for the token.
Data from DeFiLlama show that Solana’s stablecoin market capitalization currently stands at $15.11 billion. This level is a record and comes after a steady rise in the network’s stablecoin market cap since mid-September.
In addition, Solana’s total value locked (TVL) grew from $10.78 billion on September 28 to $12.69 billion, approaching the all-time high of $13.02 billion. A rising TVL points to increasing activity and user interest across the Solana ecosystem, including memecoins, DeFi protocols, and stablecoins. More users are depositing and utilizing assets within SOL-based platforms.
On the derivatives side, weighted funding rate data and open interest for Solana indicate that more traders are betting on higher SOL prices in the near to medium term. According to CoinGlass, open interest flipped positive funding on Saturday and recorded a rate of 0.0052% on Monday. Historically, when funding rates turn positive, SOL prices have tended to accelerate upward.
Bulls aim for a new all-time high
The 4-hour SOL/USD chart appears bullish and effective after Solana found support near the 61.8% Fibonacci retracement level at $193.52 late last month. Since that low, SOL has climbed about 18% and is now trading around $233 per token.
The RSI reading near 58 shows bulls have regained control, and MACD lines sit above the neutral area, signaling bullish bias. If the $230 support level holds, SOL could push higher and target a new all-time high above $295. For that momentum to sustain, RSI needs to remain above 50.
Conversely, if SOL faces a pullback after the recent rally, it could drop toward the 50-day exponential moving average (EMA) around $213.36. A stronger support zone near $203 is likely to hold in the short term.