Solana price made a strong bullish breakout on Monday as investors embraced a risk-on sentiment ahead of the Fed decision and key earnings.
The price of Solana (SOL) rose to a high of $193, its highest since April 1st. External data shows that the crypto fear and greed index rose to the greed zone of 63, signaling investor confidence.
It rallied as the futures open interest continued its recovery. According to CoinGlass, interest rose to $3.25 billion on Monday, its highest since April 1st.
The open interest has been robust after bottoming at $1.77 billion earlier this month as cryptocurrency prices dived. High interest usually indicates robust demand, hinting at possible continued price rise.
Notably, Solana is not the only cryptocurrency seeing elevated open interest in the futures market. Bitcoin (BTC), the biggest coin in the industry, saw a record open interest on Monday after endorsements by Donald Trump and Robert Kennedy.
Solana has exciting fundamentals behind it. Data shows that its ecosystem fees have jumped to $2.13 million in the last 24 hours. Polymarket participants believe the blockchain will surpass Ethereum in fees for a single day this month.
The number of active addresses in the ecosystem has risen to over 1.22 million, with strong demand for networks like Jito, Marinade, and Kamino.
Solana price zoomed past key resistance
Technically, there are signs this breakout could be real. On the daily chart, the token found a strong bottom at $120.50, avoiding dips below this level four times since April.
It has also risen above the upper side of the symmetrical triangle pattern. In a recent article, we noted this triangle suggests a bullish pennant, a popular continuation sign.
Solana also climbed above the crucial resistance point at $188.20, its highest in May this year. Therefore, the token may continue rising as buyers target the year-to-date high of $210.15.
This week includes several macro factors that could impact its prices. Companies like Franklin Templeton and Blackrock may submit their Solana ETF documents to the SEC.
The Federal Reserve is expected to signal interest rate cuts in its September meeting on Wednesday. Such a move will likely benefit risk assets like Solana and Cardano (ADA).
Meanwhile, major companies like Amazon, Microsoft, Meta Platforms, and AMD will announce their financial results. Last week’s mixed earnings from companies like Tesla and Alphabet led to a significant drop in US equities and some cryptocurrencies.
