Solana (SOL) was rather silent as Bitcoin, Ethereum and even XRP took the center stage in previous bullish rallies. However, recently the altcoin has found its ‘rizz’ again and is now leading the altcoin rally alongside Ethereum (ETH) as it pumps above $200. SOL has rallied over 56% over the last one month climbing from $133 to the current level. 

With the price now trading around February 2025 levels, the altcoin has piqued the interest of investors and traders. But, recent on-chain data suggests that Solana’s rally could be at risk as investors shift to profit-taking. 

SOL Rallies Over 6%, Flipping BNB’s Market Cap for 5th Spot 

On the day, data by CoinMarketCap shows that Solana (SOL) has rallied by 6.3% and is currently trading at $203.24. On a bigger timeframe, the altcoin is up by over 25% over the last 7 days and over 56% over the last month. This makes an impressive price performance for the coin that has been rather on the sidelines in previous market rallies.

Besides the price, the trading volume of SOL is also on the rise. As of this writing, Solana has recorded a trading volume of $14.33 billion over the last 24 hours. The current level means the trading volume has surged by 61.28% surge over the same period, indicating increased market activity. 

Furthermore, the market capitalization of Solana has surged in tandem with the price. The altcoin’s market cap now sits at $109.35 billion with the coin now ranking 5th in coin ranking by market after flipping BNB. As of this writing, BNB has a market cap of $107.19 billion. 

Solana’s Open Interest Up 50%, But Risks Lie Ahead! 

The Futures Open Interest (OI) of Solana has surged immensely over the last week. According to data by Coinglass, Solana’s Futures Open Interest currently sits at $11.03 billion marking a 50% surge from that recorded last Tuesday. This surge signals strong optimism amongst Solana futures traders.  

This on-chain metric is used to express the total number of outstanding or active derivative contracts in the market. This metric usually gauges the level of market participation and interest from investors. When increasing in tandem with the price, the OI suggests strong upward momentum and conviction in the trend due to strong capital inflow as companies like Mercury invest in SOL. 

However, it also indicates risks lie ahead due to influx of leveraged capital in the market. This simply means that in case of a correction, Solana could face massive liquidations, capable of dampening market sentiment. 

In fact, Solana’s BBTrend indicator shows that selling pressure is already mounting. According to data by TradingView, the indicator has been posting red histogram bars over the last 3 days. The size of the red histogram bars is also growing gradually signaling the surge in selling pressure. 

Solana’s BBTrend suggests that despite the recent surge in the price of SOL, some investors are locking profits. This signals a drop in investor confidence in the ongoing rally. Subsequently, SOL could be set to face a correction below $200, especially if profit-taking continues.