Solana [SOL] has surpassed Ethereum in a remarkable development, claiming the top spot in 7-day DEX (Decentralized Exchange) volume with $11.8 billion, outperforming Ethereum’s $9.2 billion. This unexpected rise has sparked speculation about a potential significant uptrend for Solana.
Therefore, a closer examination of Solana’s price movements, whale activity, liquidation statistics, and open interest levels is crucial to gauge the significance of this event in the cryptocurrency market.
Will Solana overcome resistance and experience a bullish run?
Currently, SOL is being traded at $153.09, showing a slight 0.99% decline in the last 24 hours. However, despite this minor drop, the price trajectory remains upward.
Of particular note is the critical resistance level at $163.66. A breakthrough at this point could trigger a bullish rally in Solana’s price.
Furthermore, the RSI stands at 52.31, indicating a neutral momentum, while the MACD suggests potential strengthening of the bullish trend. Hence, the focus is on whether Solana can sustain its positive momentum and move towards higher levels.
Accumulation by SOL whales indicates a possible surge
Interestingly, holders of large amounts of SOL, known as whales with holdings exceeding $5 million, now possess 57.07% of the stablecoin supply. This increase in whale concentration signals a strategic accumulation strategy. Historically, such actions from major holders have often foreshadowed price upswings.
Consequently, this accumulation raises anticipation for a substantial upward movement in SOL’s price. The whales appear to be preparing for a strong rally, showcasing their confidence in Solana’s long-term prospects.
Are SOL liquidations signaling increased market volatility?
Liquidation data indicates that $348.39K worth of long positions were liquidated in the last 24 hours, along with $70.02K in short positions. The high volume of liquidated long positions suggests a prevailing bullish sentiment among traders.
Nevertheless, this also indicates a heightened level of market leverage, which could lead to repercussions if crucial resistance levels fail to hold. Consequently, there may be additional price fluctuations if the market turns against overly leveraged traders.
Expanding open interest hints at positive market sentiment
The open interest in SOL has increased by 2.26%, reaching $2.45 billion. This rise indicates a growing interest among traders and an anticipation of increased volatility in the coming days.
Furthermore, with Solana dominating DEX volume, traders are expressing confidence in its ability to outshine the wider market.
With SOL’s strong performance and whale accumulation, the potential for a bullish run is undeniable. Should the price breach the resistance level and steer clear of further liquidations, an uptrend could transpire.
However, traders are advised to proceed cautiously due to liquidation risks. Nevertheless, Solana is well-positioned to lead the forthcoming major cryptocurrency rally.