Bitcoin
Solana Gains Momentum After Solana-Bitcoin Cross-Chain Announcement
Solana (SUN) gained bullish momentum as 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 at the time of writing. The asset’s market capitalization surpassed the $58 billion mark, with a daily train volume of $4.1 billion.
SOL Price, Binance Funding Rate, Open Interest and RSI – May 2 | Source: Santíment
According to data provided by Santiment, SOL’s total open interest has been steadily declining over the past 10 days – falling from $1.63 billion on April 22 to $1.35 billion at the time of reporting.
The decline in open interest could potentially indicate less price volatility and settlements.
Furthermore, data from the market intelligence platform shows that the ratio of long and short trading positions on Binance has halved since April 29 as SOL price continued its downward momentum. This shows that more commercial contracts have been betting against a price increase.
According to Santiment, the SOL Relative Strength Index (RSI) has risen from 43 to 50 in the last 24 hours. The indicator suggests that the asset is neither undervalued nor overvalued at this price point due to bearish market conditions.
For SOL to remain in the bullish zone, its RSI would need to remain below the 50 mark. An RSI above 50 could also suggest greater price volatility and even whale manipulation.
Bullish sentiment towards SOL comes later Zeus Network announced to potentially do 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 to convert assets like BTC in a ZPL-Asset, zBTC for example, and gain access to the Solana ecosystem, as per the announcement.