Solana (SOL) has gained bullish momentum as the Zeus network plans to connect it to the Bitcoin blockchain.
SOL price is up 4% in the last 24 hours and is trading at $129.9 at the time of writing. The market capitalization of the asset crossed the $58 billion mark with a daily train volume of $4.1 billion.
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.
Lower open interest likely indicates less price volatility and liquidation.
Furthermore, data from the market intelligence platform shows that the ratio of long to short positions on Binance has halved since April 29 as SOL price continued its downward momentum. This indicates that more trading contracts were betting on rising prices.
According to Santiment, the SOL Relative Strength Index (RSI) rose from 43 to 50 in the past 24 hours. The indicator indicates 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 must remain below the 50 mark. An RSI above 50 can also indicate higher price volatility and even whale manipulation.
The bullish sentiment towards SOL comes after Zeus Network announced the possibility of making Solana a “layer 2 solution for all blockchains” with ZPL (Zeus Software Library) and assets backed by the so-called permissionless communication layer.
In simple terms, users can turns up Assets such as BTC in ZPL-Asset, zBTC for example, and access to the Solana ecosystem, according to the announcement.