Following a significant price correction, the overall cryptocurrency market has initiated an upward trend. In the midst of this movement, Solana (SOL), ranked as the fifth-largest cryptocurrency in the world, is displaying a bullish sentiment and preparing for a substantial upward momentum.
Analysis of Solana’s Technical Indicators and Significant Levels
According to the technical analysis provided by CryptoCrypto, SOL has effectively tested the breakout level of a bullish double-bottom pattern and is currently progressing towards the $165 mark.
Furthermore, on a daily timeframe, SOL seems to be finalizing a bullish inverted head-and-shoulder pattern. The completion of this bullish structure is anticipated once SOL reaches the $165 threshold.
Currently, there is a high likelihood of SOL reaching the $165 level. Moreover, an additional bullish pattern suggests a substantial upward surge post-breaching the neckline of the inverted head and shoulder pattern at $165.
If this scenario materializes, SOL could potentially achieve the $185 level in the upcoming days. The sentiment among traders remains predominantly optimistic.
Encouraging On-Chain Metrics for SOL
The optimistic projection for SOL is further reinforced by on-chain analytics. Data from Coinglass reveals that SOL’s Long/Short ratio on the four-hour timeframe is presently at 1.089, indicating a prevailing bullish sentiment within the trading community.
Moreover, the open interest for SOL has increased by 2.9% in the recent four-hour period and continues to ascend. This upward trend in open interest suggests that traders are actively placing more orders as SOL effectively retests the recent breakout level.
In the cryptocurrency sphere, an escalation in open interest and a long/short ratio surpassing 1 are commonly perceived as positive indicators. Traders often leverage this information to establish long positions.
Key Liquidation Thresholds to Monitor
Presently, the primary liquidation levels lie at $149.5 (lower side) and $154.6 (upper side), indicating over-leveraged trading positions at these points, based on Coinglass data.
If the current sentiment persists and the price escalates to $154.6, short positions worth nearly $15.67 million are at risk of liquidation.
Conversely, in the event of a sentiment reversal leading to SOL’s descent to the $149.5 level, long positions valued at around $33.28 million are vulnerable to liquidation.
By conjoining these on-chain metrics with the technical analysis, it becomes evident that buyers are currently in control of SOL and are likely to uphold its bullish trajectory.
At latest report, SOL was exchanging hands near $153.8, demonstrating a price surge exceeding 1.1% in the past 24 hours. During this duration, trading volume dropped by 12%, indicating reduced trader participation.
Nevertheless, the volume is steadily climbing subsequent to the successful retest of key levels.