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Solana gains momentum after the announcement of the Solana-Bitcoin cross-chain
Solana (SOL) has gained bullish momentum as the Zeus network plans to connect it to the Bitcoin blockchain.
SOL is up 4% in the last 24 hours and is trading at $129.9 as of this writing. The asset’s market capitalization crossed the $58 billion mark with daily train volume of $4.1 billion.
SOL price, Binance funding rate, open interest and RSI – May 2 | Source: Santimento
According to data provided by Santiment, SOL’s total open interest has steadily declined over the past 10 days, from $1.63 billion on April 22 to $1.35 billion at the time of reporting.
The decline in open interest could potentially indicate lower price volatility and liquidations.
Furthermore, data from the market intelligence platform shows that the ratio of long to short trading positions on Binance has been halved since April 29 as the SOL price continued its downward momentum. This shows that more commercial contracts have bet against rising prices.
According to Santiment, the SOL Relative Strength Index (RSI) has risen from 43 to 50 in the past 24 hours. The indicator suggests that the asset is neither undervalued nor overvalued at this price due to bearish market conditions.
For SOL to remain in the bullish zone, its RSI should remain below the 50 mark. An RSI above 50 could also suggest increased price volatility and even whale manipulation.
The bullish sentiment towards SOL comes next Zeus network announced to potentially carry out Solana “the Layer 2 solution for all blockchains” with ZPL (Zeus Program Library) and assets powered by the so-called permissionless communication layer.
In simple terms, users could convert assets like BTC into a ZPL asset, zBTC for example, and gain access to the Solana ecosystem, according to the announcement.