Solana [SOL], the cryptocurrency ranked fourth by market capitalization globally, is showing signs of a significant upward trend as it develops a bullish price pattern.
In recent times, along with other major cryptocurrencies, SOL achieved its highest price ever. However, it is currently consolidating around that level.
This consolidation near its peak suggests that there might be a setup for a further uptrend.
At the moment, support for SOL is coming from its positive price movement, the prevailing market sentiment, and increased involvement from both traders and investors.
Solana’s Price Movement and Key Threshold
Per technical analysis by CryptoCrypto, SOL has established a bullish pennant pattern on the four-hour timeframe and is approaching a potential breakout.
Considering recent movements and past price trends, this bullish formation has occurred close to a significant resistance level of $260.
If SOL successfully breaks out of this bullish pattern by exceeding the resistance and closing a four-hour candle above $260, there is a high chance that it could surge by 15% and reach $299 soon.
Currently, the asset is trading above the 200 Exponential Moving Average (EMA), indicating an upward trajectory. Many traders and investors consider this indicator before making investment decisions.
Moreover, the Relative Strength Index (RSI) stands at 57.10, implying that SOL still has potential for growth in the upcoming days.
Diverse Views from On-Chain Metrics
Alongside technical analysis, on-chain metrics present differing perspectives among traders.
As per data from the on-chain analytics company Coinglass, SOL’s Open Interest has declined by 3.5%, showcasing that traders have either exited their positions or encountered liquidations during the recent price correction.
Nevertheless, a breakout from the current price pattern could draw the attention of both investors and traders.
As of now, the primary liquidation levels are around $251.2 on the lower side and $264.1 on the upper side, according to Coinglass’s exchange liquidation map.
This data implies that traders are heavily leveraged at these points. A breakout or breakdown from these levels could offer a more secure entry position for traders.