From August 8 to August 10, SOL’s open interest saw a slight decline from $2.25 billion to $2.20 billion. This 2.2% drop in open interest is significantly less than the 7% drop in SOL price during the same period.
When open interest declines more slowly than the price decline during a market correction phase, as was seen in the SOL/USD derivatives markets this week, it is a sign that the majority of traders view the recent 7% decline as a temporary correction rather than the start of a longer-lasting downtrend.
Open interest on Solana remains above $2 billion, suggesting that traders are currently choosing to pay increased funding rates to keep their positions open rather than closing them in a panic.
Alternatively, it could indicate a bear trap, with the market attracting short sellers ahead of a potential trend reversal. That SOL open interest remains above $2 billion despite the 7% price correction suggests that LONG traders are leaning toward consolidation around the $150 mark as markets await the next major catalyst.
SOL Price Prediction: Dominant Bulls Target $160 Breakout
Solana (SOL) price action suggests that bulls remain in control despite recent volatility. The price is currently trading around $153, close to the key support provided by the 20-day Simple Moving Average (SMA) at $163.98. This level could act as a springboard for a potential breakout.
The recent decline towards the lower Bollinger Band at $130.04 appears to have been a temporary correction, with SOL recovering quickly. The next significant resistance lies at $160, a psychological barrier that, if broken, could open the door for a move to the $170-$180 range.
