- Solana has a strongly bullish market structure and $200 was highly likely.
- There is one factor that needs to change before SOL can embark on a rally.
Solana [SOL] saw an increase in network activity and trading volume recently, surpassing even that of Ethereum [ETH] in a 24-hour window.
The number of active wallets on Solana increased, while Ethereum’s active wallets decreased over the past week.
On the price chart, Solana has a strongly bullish market structure. The Solana price prediction indicates that $200 is an easy target, but just how high can the next rally go?
Exploring the Fibonacci extension levels
Source: SOL/USDT on TradingView
The range formation (purple) was breached on the 16th of May. This breakout saw Solana prices rise to $188.9 before retracing to retest the $160 zone as support.
The Fibonacci retracement levels (pale yellow) showed how bullish the Solana price prediction is.
The trading volume has declined over the past two weeks due to the retracement. The volume will need to dramatically pick up to reinforce the bullish expectations.
On the higher timeframes, since the 78.6% Fib retracement level at $122 was defended and the structure was flipped bullishly, the next target is $210.
Beyond that, the $236 and $279 levels can also be used as take-profit levels. The RSI on the 1-day chart remained above neutral 50 in the past three weeks, supporting the idea of consistent bullish momentum.
The short-term sentiment was intensely bullish
Source: Coinalyze
On the 2nd of June, the Open Interest rose from $2.1 billion to $2.2 billion while SOL prices fell from $168 to $162. This revealed bearish sentiment and short selling. This trend took a U-turn on the 4th of June.
Read Solana’s [SOL] Price Prediction 2024-25
In the past 24 hours, both the OI and the price have trended upward, showing bullish sentiment. The spot CVD also reversed its downtrend, signifying demand in the spot markets.
The move above the $170 resistance also liquidated short positions, fueling further gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
