In the past 24 hours, the cryptocurrency market as a whole has shown signs of undergoing a price adjustment.
However, amidst this market movement, Solana (SOL), ranked as the fourth-largest cryptocurrency, has successfully retested its breakout level, indicating a potential uptrend in the near future.
The reasons behind this optimistic outlook include favorable price movements, promising on-chain data, and increased involvement from traders and large investors.
Solana Price Evaluation
Currently, Solana is hovering around a critical support level of $200. Analysis of recent price trends and historical patterns suggests a potential 25% surge, possibly propelling the asset towards the $260 mark soon.
As of now, SOL is trading above the 200 Exponential Moving Average (EMA) on the daily chart, reinforcing the positive sentiment.
Moreover, the Relative Strength Index (RSI) is indicating a probable upward trend, positioned near the oversold region.
Encouraging On-Chain Data
Further strengthening the bullish case for SOL are on-chain metrics. Coinglass, an on-chain analytics firm, reports a significant uptick in SOL’s Open Interest, indicating heightened trader activity.
Recent data shows a 3.5% increase in Open Interest over the last few hours, with a notable 5.2% surge in the past four hours. These metrics suggest growing trader confidence in a potential upward movement.
Significant Liquidation Thresholds
At present, key levels for liquidations stand at $199.5 and $210.8, according to data from Coinglass. Traders are seen to be excessively leveraging at these points, increasing the likelihood of significant market movements.
If SOL’s price reaches $210.8, it could trigger the liquidation of approximately $52.7 million in short positions. Conversely, a drop to $199.5 might lead to the liquidation of around $110 million in long positions.
The current scenario indicates a prevailing bullish sentiment that could propel SOL in an upcoming rally over the next few days.