Breaking through the $250 resistance level, Solana [SOL] has achieved a significant milestone on the weekly chart for the first time in history.
Analyst Rekt Capital views this breakthrough as a pivotal moment in the coin’s price movement.
Historically, the $250 mark has acted as a major resistance point, with Solana previously testing it during its peak in late 2021 when it reached $260 before entering a prolonged bearish phase.
If the breakout holds and $250 transforms into a support level, Solana could potentially enter a phase of price discovery.
Experts are eyeing targets around $300, a key psychological level, and $350-$400, based on Fibonacci extensions and past price patterns.
Nevertheless, failure to sustain above $250 might lead to retesting of support levels at $202.82, or even a retreat to $135.97, although current positive momentum makes the latter scenario less likely.
Price and Volume Movements
At the latest update, Solana was trading at $231.93, showing a decrease of 8.99% over the past 24 hours and 4.80% over the week.
Trading within a 24-hour range of $231.87 to $256.23 and a seven-day range of $232.43 to $263.21, Solana’s price has exhibited notable fluctuations.
The 24-hour trading volume for Solana saw a 25.94% surge, reaching $11.99 billion, as per data from Coinglass, indicating robust trading activity despite recent pullbacks.
Open Interest, which gauges the value of active derivative contracts, decreased by 7.57% to $5.18 billion, reflecting some reduction in leveraged positions following price volatility.
Optimistic Funding Rates
The Open Interest (OI)-Weighted Funding Rate for Solana has remained positive and was at 0.0130% at the present time, showing a consistent upward trend since mid-October. This indicates a moderate but steady optimism within the derivatives market.
Notably, spikes in Funding Rates during November correlated with increased leveraged long positions, signaling bullish sentiment during key price surges.
Increasing On-chain Activity
According to DefiLlama data, Solana’s total value locked in decentralized finance stands at $9 billion, reflecting a 3.29% decline over the past 24 hours.
The stablecoin market capitalization for Solana was $4.598 billion, with the network generating $7.16 million in fees and $3.58 million in revenue during the same period.
Solana’s ecosystem continues to witness high engagement, with 6.07 million active addresses and 52.71 million transactions recorded in the past 24 hours.
Whale activities and inflows totaling $1.75 million suggest sustained interest in the network despite short-term price adjustments.