Solana Clinches 5-Month High, Where to From Here?
Solana reached a five-month high of $200, reflecting a 50% rally over the past month before settling at $197. The token's market strength is indicated by a $1.5 billion increase in open interest in three days, suggesting significant capital influx. Traders are preparing for increased volatility, with implied volatility rising from 4% to 14%. There is a growing preference for bullish call options over bearish puts. Despite Ethereum's recent 60% rally, a positive outlook for Layer-1 blockchains is anticipated over the next six months, with Solana expected to benefit from increased on-chain activity and meme coin trading. Long-term bullish trends depend on favorable monetary conditions, including upcoming jobless and CPI reports. If labor market softness continues and inflation decreases, risk assets like crypto may rise sooner than expected.
