Solana price is up 6% on Friday amid calls to sustain the uptrend eyeing a breach of the $200 resistance before August. Trading has been volatile this week following the debut of Ethereum ETFs’ trading in the US.

After retesting support at $165, SOL instantly changed direction tackling resistance at $170 before moving up to exchange at $178 during US business hours.

Various factors are expected to affect Solana’s movements including the futures market open interest as it recovers from a drastic drop earlier in the month.

Inflation is another key factor traders must keep an eye on, especially with the last few months hinting a consistent downtrend.

This has also prompted alls for the first rate cut. However, the Federal Reserve appears hawkish, possibly looking for further trend confirmation in the quest to achieve the 2% inflation goal.

SOL DeFi TVL Soars As Crypto Prices Recover

Solana’s competitive decentralised finance (DeFi) sector is back to making commendable strides following noticeable correction from May’s peak of $4.97 billion to a low of $4.02 billion in July.

At $5.34 billion, Solana’s Total Value Locked (TVL) grew by 15% in July, highlighting improving sentiment in the future of the smart contracts token.

Solana DeFi TVL | Defi Llama

As more peopled lock Solana in smart contracts within the ecosystem, chances of the price soaring to new highs significantly increase. This metric is used as a long-term trend indicator.

Additionally, the Solana futures open interest (OI) improved in the last 24 hours currently up 9% to $2.7 billion on Coinglass. The OI of an asset refers to the total number of outstanding derivative contracts yet to be settled.

Solana Open Interest | Coinglass

Should the SOL OI continue to rise alongside the price, it will signal new money coming into the market and this is bullish.

Can Solana Price Tag $220 Before August?

The Solana price recovery to $178 from support at $165 was backed by a buy signal from the Moving Average Converge Divergence (MACD). A golden cross in the daily timeframe further reignited interest SOL’s trend revisal.

Solana price chart | Tradingview

Solana’s current position above the descending trend line drawn on the chart points to a bullish era with bulls yearning to push the price above $200 this weekend.

A previous SOL price prediction reveals that breaching the immediate $180 barrier could spur FOMO as traders append to their open buy orders. With volume increasing, Solana price would have the capacity to reach $220 before advancing to the previous all-time high of $260.

The post Solana Price Aims for $220 After 15% TVL Surge In July 
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Filed under: News - @ July 26, 2024 1:23 pm