Solana price surged 6% on Friday amid calls to maintain the uptrend with the goal of breaking the $200 resistance level before August.
Trading has been volatile this week following the launch of the Ethereum ETF in the United States.
After retesting the support level at $165, SOL immediately reversed course to tackle the resistance level at $170 before rising to the trading floor at $178 during US business hours.
Several factors are expected to influence Solana 's performance, including open interest in the futures market as it recovers from a sharp drop earlier this month.
Inflation is another important factor that traders must pay attention to, especially as the past few months have shown a continuous downward trend.
This also prompted everyone to cut interest rates for the first time. However, the Federal Reserve appears to be taking a hard stance, possibly seeking further trend confirmation in its efforts to achieve its 2% inflation target.
TVL DeFi SOL surges as cryptocurrency prices recover.
Solana 's competing decentralized finance ( DeFi ) sector has bounced back and made commendable strides after a notable correction from its peak of $4.97 billion in May to a low of $4.02 billion in July.
Solana 's TVL, at $5.34 billion, increased by 15% in July, highlighting the improving sentiment toward the future of the smart contract Token .
As more people lock Solana in smart contracts within the ecosystem, the likelihood of the price soaring to new highs increases significantly. This indicator is used as a long-term trend indicator.
Additionally, Solana futures open interest (OI) has improved over the past 24 hours, currently up 9% to $2.7 billion on Coinglass.
Open interest (OI) of an asset refers to the total number of Derivative contracts that have not yet been settled.
If SOL OI continues to increase with price, this will signal new money flowing into the market, which is a bullish signal.
Can Solana reach a price of $220 before August?
Solana price recovery to $178 from the support level at $165 was supported by a buy signal from the Moving Average Converge Divergence (MACD).
A golden cross on the daily timeframe has rekindled interest in a trend correction of SOL.
Solana 's current position on the descending trend line drawn on the chart indicates a bullish era, with speculators hoping to push the price above $200 by the end of this week.
A previous SOL price prediction suggested that an immediate breakout above the $180 barrier could fuel FOMO as traders add to their open buy orders.
With increasing volume, Solana price has the potential to reach $220 before heading towards its previous All-Time-High of $260.
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