Solana [SOL] has recently shown strong movements in the market, bouncing back from its recent low points on the price charts. Traders are closely observing whether SOL can overcome its current resistance levels and kickstart a bullish trend.
As of the latest update, SOL is trading at $140.02, marking a 2.60% increase in the past 24 hours. While the price action suggests a potential breakout, there are significant resistance barriers that need to be surpassed.
Potential for SOL to Break Resistance
The price movement of SOL has hinted at a consolidation phase near $135.524. A sustained breach above this level could signal a bullish momentum, with the next target set at $148.058. Moreover, if the momentum persists, SOL might aim for $161.97, the previous high noted in July.
However, on the flip side, a retest of the lower support around $127.60 could pose short-term risks for traders.
Insights from Whale Activities
According to on-chain data, whales holding over $5 million worth of stablecoins now control 61.63% of the total SOL supply. This significant whale accumulation indicates a confident outlook towards a potential upward price movement.
Consequently, with major players also making strategic moves, the price of SOL could witness an uptrend if it manages to break through the resistance levels.
Impact of SOL Liquidation Data
Recent liquidation data has shown that $1.91M in short positions were liquidated, while longs accounted for just $147.5K. This disparity in liquidations indicates a cautious approach by short traders, possibly in anticipation of a bullish breakout. Such imbalance in liquidation activities could further fuel the potential upward movement.
Hence, if this trend persists, the continued liquidation of short positions might propel SOL towards higher levels, intensifying volatility in the short run.
Long/Short Ratio in the Market
As per the latest data, the long/short ratio currently favors long positions at 51.55%, reflecting a growing bullish sentiment among traders. Yet, with 48.45% still maintaining short positions against Solana, the market sentiment remains divided.
Therefore, traders should remain vigilant as volatility could spike. While sustained dominance by long positions may lead to substantial gains for SOL, quick reversals are also a possibility.
In conclusion, Solana appears poised for a potential breakout. The optimistic whale activities, liquidation trends, and the long/short ratio all paint a positive picture. However, overcoming the existing resistance levels is crucial. If Solana manages to surpass these barriers, the next key targets would be $148.058 and $161.97.
Hence, traders must prepare for a decisive move that could shape Solana’s trajectory in the upcoming days.