Solana (SOL) saw a massive jump in open interest during July, rising by over 370%, which shows a strong return of market interest. This sharp rise could signal a possible price comeback, especially after SOL triggered a drop toward $160. With more money flowing into SOL futures, many investors are now watching closely to see if this momentum can turn into a solid rebound for Solana’s price in the coming days.

Solana Records Strong Surge in Key Metrics

Solana had a strong July, with activity across its futures market picking up sharply. Open interest on CME SOL futures surged by 370%, hitting $400 million, while trading volume jumped from $2.2 billion in June to $8.1 billion. This spike came just three months after the futures product launched and followed the announcement of the first Solana spot ETF with staking earlier in July.

Beyond futures, Solana’s on-chain activity also saw major growth. Circle minted 11% more USDC on the network last month, pushing the total USDC supply on Solana to $12.2 billion. Stablecoin transfer volumes rose 54% to $220 billion, with USDC alone accounting for $186 billion. DEX trading was also strong, averaging over $900 million in daily volume, with USDC peaking at $1.93 billion.

Also read: Cardano’s Long/Short Ratio Slips — Is a Drop Below $0.70 for ADA on the Horizon?

While open interest peaked above $5 billion on July 14, it later fell to $4.6 billion following price corrections and liquidations. Additionally, Solana continued to lead all Layer 1 and Layer 2 blockchains in transaction fees for the tenth month in a row, showing steady real-world usage.

An additional $690 million in assets were also bridged to the network, and the meme coin “LetsBonk” overtook Pump.fun as Solana’s latest viral token. Going forward, SOL’s price will likely depend on both growing ecosystem demand and sentiment in the derivatives market.

What’s Next for SOL Price?

Sellers pushed back, stopping Solana from staying above its 20-day moving average at $175. As a result, SOL dropped below immediate Fib levels. As of writing, SOL price trades at $165, declining over 6.8% in the last 24 hours.

The next key support is the 158 level. If the price bounces off that level, buyers might make another attempt to push SOL above $185. If they manage to break through, the price could climb toward $206.

But if SOL drops below the $158 level and closes there, it would give the upper hand to the sellers. In that case, the price could fall further toward $125, keeping Solana stuck in a wider trading range between $206 and $110 for a while.

The RSI level is declining strongly as it now hovers around the overbought region at level 25. This suggests that buyers might soon make a comeback and trigger a rebound rally for SOL price. However, they need to defend the 23.6% Fib channel strongly.