Why is Solana (SOL) price up today?

NOIDA (CoinChapter.com)— Solana (SOL) has experienced a notable price increase today, driven by two main factors: the launch of Robinhood Crypto’s new staking service and a significant rise in open interest in the Solana derivatives market.

SOL price rallied more than 16% since May 15 to reach a daily high near $164 on May 16, highlighting increased investor interest in the token.

Robinhood Staking Could Be Why Solana Price Is Up Today

Robinhood Crypto has introduced its first-ever crypto-staking product, exclusively available to its European customers.

Robinhood’s new feature lets users stake their SOL holdings directly through the app, enabling them to earn rewards and unstake at any time. This staking service meets the growing demand for passive income opportunities among European users and enhances the overall user experience on the platform.

Johann Kerbrat, VP and GM of Robinhood Crypto, highlighted the company’s commitment to catering to its European customer base. He emphasized that customers have expressed a clear preference for localized support and products that enable them to earn additional passive income.

By offering Solana staking with competitive yields, Robinhood Crypto aligns itself with other major platforms like Kraken and Binance, which also offer SOL staking services but with varying yields​.

In addition to staking, Robinhood Crypto has announced plans to launch local language versions of its app in Italy, Poland, and Lithuania. The combination of these new features and services has generated significant interest and excitement among investors, contributing to the surge in Solana’s price​.

Increase in Open Interest

Another significant driver of Solana’s price surge is the substantial increase in open interest in its derivatives market. Since the beginning of May, the open interest in Solana futures has risen by $260 million.

The increase indicates growing investor confidence and suggests that traders are placing big bets on further price gains for Solana.

The open interest metric measures the dollar value of active perpetual futures contracts. The rise in open interest, combined with the organic demand in the spot markets, suggests that the current rally is supported by strong investor sentiment rather than speculative activity alone.

The bullish trend has contributed to Solana’s upward price movement.

SOL Price Close To Breaking Out Of Bullish Pattern

Moreover, SOL price is close to breaking out of a bullish technical pattern called the ‘falling wedge.‘

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.

To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.

An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.

According to the rules of technical analysis, the SOL price could rally over 57% to reach the pattern’s theoretical price target near $254.