Solana’s performance has been impressive as it successfully defended the critical support level at $162. The most recent charts show an 11% increase since the altcoin retested the important support at $66.5. At the time of writing, SOL was trading at $180.45.
Solana’s recent rebound happened at a significant demand region, indicating a strong presence of buyers at lower price levels.
Source: Tradingview
Surge in Social Interest for Solana
Data from santiment reveals that Solana’s social volume has reached its highest point in the past six months. The data on the altcoin’s social volume shows a notable increase in conversations and mentions across various social platforms, especially since early October.
Historically, this rise in social interest often precedes significant price actions, as observed during previous rallies of SOL.
Source: Santiment
Positive Funding Rates Indicate Bullish Momentum
Further examination of Binance funding rate data by CryptoCrypto reveals a consistently positive trend, with minimal negative readings since July 2024.
The sustained positive environment of funding rates suggests that traders are ready to pay a premium to maintain their long positions, signaling a strong bullish sentiment in the futures market.
Source: Santiment
In addition to the positive funding rates mentioned earlier, there has been a notable increase in Solana’s long-short ratio. Long positions now represent around 52% of all positions.
The dominance of long positions over short positions is a significant bullish indicator for an expected price surge.
Source: Coinglass
Positive Technical Outlook for Solana
The technical analysis indicates a clear breakout from a consolidation phase that lasted several months.
With the current price testing the resistance zone between $180-$190, SOL seems poised for a potential upward movement towards the psychological barrier of $200.
The formation of higher lows since July further supports this optimistic outlook.
Considering the combination of upbeat social sentiment, favorable funding rates, and a robust technical setup, SOL might be gearing up for another bullish rally.
Nevertheless, the resistance at $189 is an important level to watch, as a significant breakthrough above it could accelerate the momentum towards $250.
Maintaining the critical support at $162 is crucial for sustaining the bullish market structure.