Will Solana Price Rally to $200 as Bulls Regain Momentum Post-FOMC?

Solana (SOL) price started gaining traction after the Federal Open Market Committee (FOMC) announced interest rates would remain unchanged. This news boosted the crypto market’s bullish run. It has also taken SOL price back above $150.

Analysts have predicted that Solana price could climb higher towards the $200 mark. Since traders have put much hope on the ongoing recovery, SOL is on the verge of a possible breakout.

Solana Long Positions Dominate with 62.78% Market Share on Binance

Solana crypto’s recent price spike has been backed by strong trader confidence. According to CoinGlass, the Solana derivatives market on Binance is now dominated by long positions, with a long-to-short account ratio of 1.69.

It indicates that 62.78% of all active positions on Binance are long, implying there is a strong bullish bias among traders. The high long interest showed that many traders believe the current uptrend will continue. It could possibly lead to a rise in prices toward the next major resistance zones.

Moreover, this bullish sentiment is consistent with the market-wide optimism after the FOMC’s decision has caused several leading altcoins to rise. With traders continuing to take leveraged bets on additional gains, the short-term Solana price outlook is bullish.

SOL Open Interest Surges

In addition to an increase in long positions, the open interest of Solana has surged to $5.65 billion. This 4% increase is a testament to increasing market participation and a high level of confidence among traders that Solana price could continue its recent gains.

Open interest is the total volume of active contracts. It is an important indicator of market sentiment because it often signals increased trading activity.

In addition, the increase in open interest is also a good indication that capital has increased in Solana’s future markets. It is a positive counter for a sustained rally.

When writing, the funding rate of Solana contracts was 0.0053%. It showed that the traders were willing to pay for supporting their long positions in continuation of the existing bullish trend.

38.20% Fibonacci Resistance at $164.77 Could Trigger a 35% Rally in Solana Price

From a technical standpoint, Solana price faced a crucial resistance at the 38.20% Fibonacci retracement level at $164.77. This level corresponded to a critical supply zone and was likely to test the ongoing recovery.

The SOL coin managed to break through this barrier. So, there could be a potential continuation of the existing rally to the 61.80% Fibonacci level, situated around the $200 level.

Additionally, a 35% further increase was supported by the technical indicators, including the relative strength index (RSI). It was above the midpoint at press time, indicating more buying pressure.

Moreover, the Chaikin Money Flow (CMF) index was 0.06 and hence in favor of the bullish position taken on Solana.

DeFi Development Corporation Announces 7-for-1 Stock Split

In another development, DeFi Development Corporation, one of the industry players in the blockchain sector, has announced a 7-for-1 forward stock split. It will become effective from May 20, 2025.

This step, of increasing liquidity and opening up shares to retail investors, should generate wider market interest.

Interestingly, the company, which has a majority of its treasury in Solana, declared that its record shareholders, as of May 19, would get six more shares for every one they hold. It is a tactical shift to enhance Solana investor access and boost overall market involvement in line with the overall bullish presentation.

At the time of writing, Solana price was trading at $171.18, up 5.16% in 24 hours. Strong buying volume indicates the price could soar further in the upcoming days.

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