After reaching a peak of $193, Solana [SOL] has been unable to sustain its upward trajectory and recover higher price levels. Consequently, the digital asset is currently trapped within a consolidation range of $140 to $160.
This indicates that, following a drop below $160, sellers have dominated the market, keeping prices confined within this particular range.
At the present moment, SOL is trading at $146, representing a 9.11% monthly decrease, despite recording moderate gains on a weekly and daily basis.
Despite the recent progress, SOL still lags behind its all-time high (ATH) of $259 from 2021 by 43.9%.
Although SOL has encountered difficulty surpassing the $160 mark, the recent price movements have generated optimism and sparked discussions among analysts. Coin Signals, for example, has hinted at a possible upswing, pointing to the 200 EMA.
Solana’s Conquest of the 200 EMA
According to Coin Signals’ analysis, SOL has crossed above the 200 EMA on daily and 4-hour timeframes, breaking out of the symmetrical triangle pattern.
Essentially, this breakout above the upper trendline signals the initiation of an upward trend, positioning the digital asset for potential further price increases.
Insights from SOL’s Charts
The Long/Short Ratio for Solana on a 4-hour timeframe was 1.2 at the time of this writing, indicating a prevalence of long positions in the market, reflecting confidence in price appreciation.
This preference for long positions is reinforced by a positive DyDx Exchange Funding Rate over the past week, implying that long investors are paying a premium to hold their positions during market downturns.
This behavior within the market also signifies investor trust in the anticipated future gains of the digital asset.
Furthermore, Solana’s Open Interest in USD per Exchange has surged in the past week, escalating from $649 million to $712 million.
This surge indicates an influx of new positions as investors anticipate further price gains.
Essentially, while SOL has faced challenges breaking above the $140 and $160 levels, the market sentiment has turned increasingly positive towards the digital asset.
Given the current conditions, Solana might be poised for additional gains. A breakthrough above the $160 resistance level could propel the altcoin to reach $170.