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.

Solana (SOL) price started gaining some traction after the Federal Open Market Committee (FOMC) announced that interest rates would remain unchanged. This news came as no surprise to traders and analysts, who had largely priced in the decision.

The crypto market reacted positively to the FOMC decision, with several leading altcoins experiencing gains. As traders continue to take leveraged bets on additional gains, the short-term Solana price outlook is bullish.

Solana Long Positions Dominate with 62.78% Market Share on Binance

Solana crypto’s recent price spike is 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.

This reading indicates that 62.78% of all active positions on Binance are long, implying a strong bullish bias among traders. The high long interest shows 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, a 4% increase. This signals 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 and is an important indicator of market sentiment because it often signals increased trading activity.

The increase in open interest is also a good indication that capital has increased in Solana’s futures markets, which is a positive counter for a sustained rally.

When writing, the funding rate of Solana contracts was 0.0053%, which 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 crucial resistance at the 38.20% Fibonacci retracement level at $164.77. This level corresponded to a critical supply zone and is likely to test the ongoing recovery.

The SOL coin managed to break through this barrier, setting the stage for a potential continuation of the existing rally to the 61.80% Fibonacci level, situated around the $200 mark.

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

Moreover, the Chaikin Money Flow (CMF) index is 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, one of the industry players in the blockchain sector, DeFi Development Corporation, has announced a 7-for-1 forward stock split, which 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—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 the past 24 hours. Strong buying volume indicates the price could soar further in the upcoming days.

News data source: kdj.com

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