Solana [SOL], ranking high among cryptocurrencies in terms of market capitalization, is displaying signs of recovery following a downward trend at the end of August.
During the last week, SOL experienced a significant drop, declining by close to 10% from its previous peak. However, as September commenced, the asset began a gradual ascent.
After hitting a low of $124 recently, Solana has bounced back to surpass $134 in early trading. Presently, there has been a slight retracement, with the asset trading at $132, marking a 2.3% increase over the last 24 hours.
Solana’s Breakpoint Influence: Past Instances of Price Surges
The recent price movements have attracted attention from analysts in the crypto sphere. Known analyst Marty Party shared his insights on Solana’s future.
In response to fellow analyst Sai, he delved into the asset’s price behavior preceding the Breakpoint event associated with Solana—a conference that gathers the SOL community to discuss the latest developments in web3.
Party observed, “On average, Solana’s price surges by 62% during the Breakpoint pump. With SOL currently at $133, a 62% increase would place it at $215.46,” hinting at a significant price surge preceding this year’s Breakpoint conference.
Sai conducted a detailed analysis of Solana’s price movements leading up to the Breakpoint event, highlighting the historical trends of price increases ahead of the conference.
In past years, Solana has witnessed notable price upticks in the days before Breakpoint.
As per Sai, there was a 68% surge in 2021, followed by a 42% increase in 2022, and a 58% rise in 2023 in the run-up to the event.
This year’s Breakpoint conference, scheduled for September 20th in Singapore, could witness a similar price trend, with analysts forecasting another substantial rally leading to the event.
Crucial Metrics to Monitor: RSI and Open Interest
While the optimism from analysts like Party and Sai regarding Solana’s price movement is noteworthy, it’s vital to scrutinize the asset’s fundamentals to validate this bullish outlook.
One critical aspect to consider is Solana’s open interest, a metric gauging the total number of open contracts in futures markets.
Data from Coinglass indicates that Solana’s open interest has decreased by 0.96%, currently standing at $2.03 billion. Additionally, open interest volume has dropped by 13.20% to $6.35 billion.
A decline in open interest typically signals reduced market participation and could indicate limited price action in the near future.
Alongside open interest, another significant indicator to track is Solana’s Relative Strength Index (RSI). Based on CryptoQuant data, Solana’s RSI is presently at 43, indicating a neutral stance.
RSI serves as a technical tool measuring price momentum, aiding traders in identifying market conditions of overbought or oversold assets.
With an RSI of 43, Solana is currently hovering neither in the overbought nor oversold territory, suggesting the potential for either bullish or bearish momentum in the market.