Solana [SOL] has been setting up a strong bullish pattern with a cup and handle formation visible on the weekly chart, indicating a possible breakout. Currently, SOL is trading at $238.32, marking a 1.08% increase in the last 24 hours.
The current price level is challenging a crucial supply area, and a successful breakthrough here could trigger a notable upward surge.
Traders and investors are eagerly watching to see if SOL can sustain its drive and surpass this barrier.
Is SOL poised for a breakout?
The weekly chart for Solana clearly illustrates a traditional cup and handle pattern, a bullish indication hinting at a potential upward trend. The price is approaching a significant supply region, a key resistance level.
A successful breach above this zone would likely attract more buyers, propelling SOL to higher levels. However, a rejection could result in a temporary setback.
Therefore, market participants will closely monitor SOL’s performance at this stage to gauge the forthcoming price movement.
What do the technical signals indicate?
Technical indicators further validate the positive outlook. The Relative Strength Index (RSI) stands at 66.11, indicating robust buying pressure but with some room left before entering overbought territory.
Moreover, the Moving Average Convergence Divergence (MACD) is at 9.22, reinforcing the uptrend in SOL’s price.
These bullish signals suggest that a successful breakout from the supply zone would enhance these technical indicators, drawing more traders into long positions.
Why is Social Presence gaining momentum?
SOL’s Social Presence has increased from 4.73% to 5.36% within a single day, reflecting growing engagement and interest on social platforms.
Such a rise in visibility often correlates with heightened market activity and price momentum.
Hence, a higher Social Presence indicates an influx of traders into the market, potentially bolstering SOL’s bullish run.
How do liquidations impact SOL’s momentum?
Liquidation data highlights a strong bullish sentiment among traders. SOL witnessed $44.39k in short liquidations and $1.49M in long liquidations.
The greater volume of long liquidations suggests widespread confidence in SOL’s upward trajectory.
Consequently, these liquidations support the likelihood of SOL breaking through the supply zone and sustaining its bullish course.
What does Open Interest suggest about SOL’s future?
Open Interest has surged by 4.04%, reaching $6.02B, indicating a substantial inflow of capital into Solana futures contracts.
A higher Open Interest signifies increased commitment from traders with significant investments, promoting price stability and reinforcing the bullish trend. This metric enhances the probability of a successful breakthrough above the supply area.
Solana is on the verge of a pivotal breakout, exhibiting a bullish cup and handle pattern on the weekly chart.
Thus, SOL is likely to breach the supply zone, sustaining its upward momentum and laying the foundation for a prolonged price rally.