Solana (SOL) Surges 4.3% as Institutional Interest and Derivatives Data Point to New Highs

Solana (SOL) has seen a significant increase in its price, rising by 4.3% over the last 24 hours to trade at $165 on June 11. This price is still 43% below its all-time high of $294, which was reached on January 19. However, several fundamental, on-chain, and technical metrics suggest that SOL could continue its ascent toward new all-time highs above $330.

One of the key indicators of this potential rise is the increase in leveraged positions, with the aggregate open interest (OI) for Solana futures reaching $7.54 billion, up 12% in the last 24 hours. This is a 20% increase from the previous week and sits just 12% below the peak of $8.57 billion reached on January 19. This reflects a strong adoption of SOL derivatives, suggesting rising institutional interest but also introducing potential risks.

Despite the higher risk of forced liquidations in the event of a SOL price correction, derivatives data points to further upside potential. Solana’s primary decentralized application metric started to display strength earlier in April. The network’s total value locked (TVL), which measures the amount deposited in its smart contracts, rose to its highest level since June 2022 at 56.8 million SOL, worth approximately $9.1 billion. This increase in TVL suggests a growing interest in the Solana ecosystem and its decentralized applications.

Another factor contributing to Solana’s increase in value is the number of active addresses within the ecosystem. The number of Solana network addresses interacting with decentralized applications jumped by 38.5% over the last 24 hours to 2.7 million. Positive performance is seen among the top 5 DApps, with their unique active wallets (UAWs) rising by 77%-300%. This suggests increased interest in the layer-1 ecosystem, raising demand for SOL.

The likelihood of the US Securities and Exchange Commission (SEC) approving a spot Solana exchange-traded fund (ETF) in 2025 jumped to 91% on June 11. Multiple spot Solana ETF applications from asset management giants signal robust demand for regulated SOL investment vehicles. Approval of these funds could unlock institutional capital, amplifying demand for SOL and potentially driving prices higher, with some analysts predicting targets as high as $1,300.

Technical analysis also supports the bullish outlook for SOL. SOL price has formed a bull flag chart pattern on the weekly chart. A bull flag pattern is a bullish setup that forms after the price consolidates inside a down-sloping range following a sharp price rise. Bull flags typically resolve after the price breaks above the upper trendline and rise by as much as the previous uptrend’s height. This puts the upper target for SOL price at $335, or a 103% increase from the current price. The weekly RSI is moving above the midline and has increased to 51 this week from 36 on March 31, indicating increasing bullish momentum.

In summary, the increase in open interest for Solana futures, the rise in TVL and the number of active addresses, and the bullish technical indicators all suggest that SOL has the potential to reach new all-time highs above $330. The approval of a spot Solana ETF could further amplify demand for SOL, driving prices even higher. However, investors should conduct their own research and be aware of the risks involved in any investment or trading move.