Solana price dropped for the third consecutive day today, September 16, erasing some of the gains made last week. This pullback could form a good entry point as futures open interest jump, Federal Reserve interest rate cuts near, and corporate buying intensify.
Top 3 Reasons Solana Price May Surge 25% Soon
Solana price could be ripe for a strong surge in the coming weeks as derivatives data show that its demand among investors is surging.
CoinGlass data shows that the futures open interest has been in a strong uptrend this year, peaking at over $16 billion on Tuesday. Soaring open interest is a sign that there is robust demand among investors in the futures market.
The surge is important as Solana’s open interest started the year at $6.8 billion and bottomed at $3.64 billion in March. At the same time, the weighted funding rate has remained in the green in the past few days, signaling that investors anticipate the future price will be higher than where it is today.
One of the ongoing demand for Solana is coming from institutional investors, who have started accumulating it in a process that mirrors that of MicroStrategy and Bitcoin.
Data shows that companies like DeFi Development, Upexi, Sharps, and Sol Strategies have bought over 6.5 million tokens worth over $1.5 billion. This growth will continue as Sol Strategies recently listed on the Nasdaq and more companies are expressing their interest in the coin.
Unlike Bitcoin treasury companies, those with Solana holdings are at an advantage because of the staking revenue they will be earning. Solana has a staking yield of about 8%, meaning that a company will $500 million in holdings can expect to make $40 million in staking revenue a year.
SOL price will also be a top beneficiary of the upcoming interest rate cuts by the Federal Reserve. That’s because these cuts may help to incentivize risk-taking, especially in the meme coin market, where Solana dominates.
Most importantly, the Securities and Exchange Commission is expected to approve numerous SOL ETFs in October, which will also act as a catalyst for the coin.
SOL Price Technical Analysis
The weekly timeframe chart shows that the SOL price has been in a strong recovery in the past few days, moving from a low of $94.95 on April 7 to 233 today.
Solana has moved above the Ichimoku cloud indicator, confirming a bullish breakout. It also jumped above the 50-week Exponential Moving Average (EMA).
The MACD indicator has continued rising and recently crossed the important zero line, confirming more gains. Also, the Relative Strength Index is rising and nearing the overbought level at 70.
Therefore, the token will likely continue soaring as bulls aim for the all-time high at $295, which is about 25% above the current level. A drop below $200 will cancel the bullish SOL price forecast.
Frequently Asked Questions (FAQs)
The most likely Solana price forecast is bullish ahead of SOL ETF approvals and as open interest jumps.
The open interest is rising as demand among investors continues rising and nearing the important milestone at $20 billion.
Solana price will likely surge to the all-time high of $295, and then cross the resistance at $300 soon.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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