Key Points
- Solana (SOL) is experiencing bullish momentum due to Zeus Network’s plans to connect it with the Bitcoin blockchain.
- Santiment data shows a decrease in SOL’s total open interest, indicating potentially less price volatility.
Solana (SOL) is showing bullish signs, driven by plans from Zeus Network to link it with the Bitcoin blockchain.
SOL has seen a 4% increase in the past 24 hours, trading at $129.9 at the time of reporting. Its market cap has exceeded $58 billion, with a daily trading volume of $4.1 billion.
Decreasing Open Interest
Santiment data reveals that the total open interest in SOL has been consistently dropping over the past 10 days. It decreased from $1.63 billion on April 22 to $1.35 billion at the time of reporting.
This reduction in open interest could suggest a decrease in price volatility and liquidations.
Trading Positions and RSI
Furthermore, the ratio of long to short trading positions on Binance for SOL has halved since April 29, as the price continued its downward trend. This indicates that more trading contracts are betting against a price increase.
The SOL Relative Strength Index (RSI) has risen from 43 to 50 in the past 24 hours, according to Santiment. This suggests that the asset is neither undervalued nor overvalued due to current bearish market conditions.
For SOL to remain in the bullish zone, its RSI would need to stay below 50. An RSI over 50 could also indicate higher price volatility and potential whale manipulation.
The positive sentiment towards SOL comes after Zeus Network’s announcement to potentially make Solana “the Layer 2 solution for all blockchains” with the Zeus Program Library (ZPL) and assets powered by the permissionless communication layer.
In simpler terms, users could convert assets like Bitcoin into a ZPL-Asset, such as zBTC, and gain access to the Solana ecosystem, according to the announcement.
