Solana gains momentum following Solana-Bitcoin cross-chain announcement

Solana (SOL) 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 at the time of writing. The asset’s market value exceeded $58 billion, with daily train volume of $4.1 billion.

SOL price, Binance funding rate, open interest and RSI – May 2 | Source: Santiment

According to data provided by Santiment, SOL’s total open interest has decreased continuously over the past 10 days; It fell to $1.35 billion during the reporting period from $1.63 billion on April 22.

Decreased open interest could potentially indicate less price volatility and liquidation.

Moreover, data from the market intelligence platform shows that the ratio of long/short trading positions on Binance has halved since April 29, as the SOL price continues its downward momentum. This suggests that more trading contracts are betting against price growth.

According to Santiment, the SOL Relative Strength Index (RSI) increased from 43 to 50 in the last 24 hours. The indicator shows 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, the RSI must remain below the 50 level. An RSI above 50 could also mean higher price volatility or even whale manipulation.

The bullish sentiment towards SOL comes after Zeus Network announced that it would potentially make Solana a “Layer 2 solution for all blockchains” with assets backed by the ZPL (Zeus Program Library) and the so-called permissionless communications layer.

In simple terms, users will be able to convert assets such as BTC into a ZPL Asset such as zBTC and gain access to the Solana ecosystem, according to the announcement.