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- Over the past four weeks, the Solana price has been resonating within a tight range of $145 and $125.
- The open interest associated with the Solana futures contract has been wavering sideways near $7.3 billion, suggesting a lack of speculative force in its price.
- SOL’s DeFi total value locked remains largely unchanged, hovering around the $8.7–$8.8 billion range.
SOL, the native cryptocurrency of Solana, showcased low volatility trading on the weekend, as its price wavered around $132.5. The sluggish trend can be attributed to macroeconomic uncertainty in the U.S. and a lack of conviction from buyers or sellers in the derivative market. However, as no trend remains the same in the financial market, the current consolidation could lead to a tug-of-war between buyers and sellers to eventually conclude with a range breakout.
SOL Futures Open Interest Stalls as Traders Sit on the Sidelines
Over the past 48 hours, the Solana price showcased a sluggish trend with a narrow range neutral candle, trading around $135.5. The lack of initiation from bull and bears to drive a sustained recovery has led to tight consolidation between $145 and $125 support.
Amid Solana’s ongoing price consolidation, futures market activity is still notably subdued. Open interest in Solana futures has remained around $7.3 billion since mid-November, with hardly any directional movement. This flat OI profile signals a lack of fresh capital flowing into leveraged positions and indicates a cautious speculative appetite, with traders hesitant to trade in the absence of a clear market driver.
While stable open interest is a good sign that the market is not subject to excessive leverage or forced liquidations, the failure to expand significantly is often indicative of indecision.
Such circumstances are usually conducive to prolonged sideways price action, where participants await a clear catalyst, such as new ETF-related inflows, protocol upgrades, or a change in market sentiment, to establish a stronger trend.
On-chain metrics reinforce this subdued backdrop. Solana’s total value locked across DeFi protocols has been a similarly flat line. Data from DefiLlama indicates that TVL is holding close to $8.77 billion, with a negligible increase of 0.04% in the past 24 hours.
While the flatline trend may suggest sustainability and no major outflows from investors, the absence of meaningful fluctuation since mid-November hints at low new capital deployment into the ecosystem.
If the aforementioned metric continues for a prolonged period, the Solana price would struggle to drive a sustained recovery.
Solana Price Awaits Major Breakout From Range Pattern
The prevailing correction trend in Solana price has recently stabilized above the $125 support. The current price trajectory continues to consolidate between the aforementioned psychological support and $145 resistance.
The coin price has bounced several times within the range, accentuating the lack of initiation from buyers or sellers to drive a sustained recovery. However, the coiling would allow any party to recoup their grip over this asset and give a respective breakout.
The Solana price is currently trading below the key exponential moving averages (20, 50, 100, and 200), indicating the path of least resistance is downward. If the coin price breaks the $125 support, the selling pressure would accelerate and drive an extended correction of another 20% to hit $1,000 lower.
On the contrary, if the coin price manages to break $1.45 resistance, the coin price could jump roughly 10% before challenging a key resistance trend and adding the $160 mark.