Solana’s Bullish Surge: SOL Targets $500 Amid Rising TVL and Increasing Open Interest
The post Solana’s Bullish Surge: SOL Targets $500 Amid Rising TVL and Increasing Open Interest appeared on BitcoinEthereumNews.com.
Solana has exhibited bullish tendencies over the last 170 days within the 8-hour timeframe charts. Open Interest in Solana Futures has grown by 1.42%, hinting at potential positive movement. The staking protocol Jito has locked over 12 million SOL in value, spurred by MEV staking rewards and rising LST adoption. Solana shows promise with its increasing TVL, bullish technical patterns, and resurgence in Open Interest, potentially setting the stage for significant price gains. Solana’s Growing Influence in the DeFi Sector Jito’s achievement of surpassing 12 million SOL in locked value highlights a burgeoning interest in Solana’s staking opportunities. This growth is largely driven by MEV staking rewards and increasing LST adoption, solidifying Jito’s position as Solana’s top staking protocol. Concurrently, Jupiter Exchange has emerged as the leading derivatives protocol by TVL, with $698 million worth of SOL, indicating robust participation and liquidity in Solana’s ecosystem. Implications of Rising TVL on Solana The surge in Total Value Locked (TVL) on Solana, particularly through platforms like Jito and Jupiter Exchange, suggests heightened blockchain activity and user engagement. According to DefiLlama, this competitive edge and increased TVL might be indicative of impending price appreciation for Solana-based assets. With the demand for decentralized finance (DeFi) solutions on the rise, Solana’s ecosystem is positioned strongly to benefit from this trend. Technical Analysis: Bullish Patterns Emerging Solana’s price has been consolidating between $120 and $210 for around 170 days, hinting at potential upward momentum. Analysis of the 4-hour and 8-hour charts displays a Bullish Pennant pattern, suggesting a possible climb to the $204 level. This consolidation phase, coupled with strong technical indicators, points to a significant bullish breakout once key resistance levels are surpassed. Comparative Analysis with Ethereum Remarkably, Solana’s current price pattern bears resemblance to Ethereum’s performance in late 2020, prior to its leap to…
Filed under: News - @ August 18, 2024 4:03 am