Solana price could rise 25% as open interest nears $20 billion and institutional interest grows, with key catalysts ahead.
Solana price is showing strong upward momentum, with its futures open interest nearing a critical $20 billion milestone.
Despite a slight pullback on September 16, the token remains bullish, with various factors contributing to its potential 25% rally. Rising institutional interest, upcoming Federal Reserve rate cuts, and the possible approval of Solana ETFs are all shaping the outlook for the token.
Strong Demand Reflected in Rising Open Interest
Solana futures open interest has been on an upward trend throughout 2025, recently peaking at over $16 billion.
The increase in open interest suggests a growing demand from investors in the futures market, signaling optimism about Solana future price performance. Starting the year at $6.8 billion, it reached a low of $3.64 billion in March but has since regained momentum.
This trend reflects investor confidence and a positive sentiment surrounding the asset’s potential.
The increase in open interest also correlates with Solana weighted funding rate, which has remained in the green in recent days. This indicates that investors believe Solana price will rise in the coming weeks, reinforcing the bullish outlook for the cryptocurrency.
Institutional Investors Drive Solana Growing Demand
Institutional interest in Solana has been growing steadily, with companies like DeFi Development, Upexi, Sharps, and Sol Strategies acquiring over 6.5 million tokens, worth more than $1.5 billion.
This accumulation mirrors trends seen with other major cryptocurrencies, such as Bitcoin. Institutional investors see the potential for Solana price to appreciate, driven by strong fundamentals and growing market demand.
Additionally, institutional holders of Solana benefit from staking rewards, which offer an 8% annual yield.
For example, a company with $500 million in Solana holdings could earn approximately $40 million annually in staking rewards. This additional incentive is driving institutional interest, further supporting the cryptocurrency’s potential for a price surge.
SOL Price Technical Analysis
The daily timeframe chart indicates that Solana (SOL) has been in a strong recovery, rising from a low of $94.95 in April to its current price of $234.42.
Solana has recently moved above the Ichimoku Cloud, signaling a bullish breakout. It has also surpassed the 50-day Exponential Moving Average (EMA), further confirming the uptrend.
The MACD is showing continued bullish momentum, with the indicator rising above the zero line and maintaining positive momentum. The RSI (Relative Strength Index) is also increasing and currently stands at 63.15, approaching the overbought level of 70.
With these positive technical signals, Solana price could continue its upward trajectory. Market observers are now eyeing the potential for the coin to challenge its all-time high near $295, representing a 25% increase from its current level.
However, a drop below $200 could invalidate the current bullish outlook for SOL.