Connect with us
Active Currencies 14783
Market Cap $2,264,894,982,881.90
Bitcoin Share 54.16%
24h Market Cap Change $-1.74

Solana surge alert: Why traders should brace for a 25% hike

2min Read

SOL’s RSI has formed a bullish divergence that signals a potential trend reversal.

Solana

Share this article

  • Based on the historical price momentum, there is a high possibility that Solana’s price could soar by 25% to the $160 level.
  • $25 million worth of short positions will be liquidated if SOL hits the $131 level.

Amid the bearish market sentiment, Solana [SOL] appears poised for a massive upside rally due to its bullish price action pattern and strong on-chain metrics. In the past few days, despite a notable price decline across the cryptocurrency market, SOL has been consolidating near a crucial support level of $125. 

Solana technical analysis and upcoming levels

Based on expert technical analysis, SOL appeared bullish at press time. Its Relative Strength Index (RSI) has formed a bullish divergence that signals a potential trend reversal from a downtrend to an uptrend.

This divergence occurs when the asset’s price continues to form lower lows, while the technical indicator forms higher lows during the same period.

Solana technical analysis

Source: TradingView

Based on the historical price momentum, whenever SOL reaches its current support level, it tends to experience a massive price surge. This time, with bullish price action there is a high possibility that SOL price could soar by 25% to the $160 level.

Bullish on-chain metrics

CoinGlass’s SOL Long/Short ratio chart signals bullish market sentiment. According to the data, the ratio currently stands at 1.103, indicating that traders are more optimistic (A value above 1 signals bullishness).

Meanwhile, SOL’s open interest has increased by 3% in the last 24 hours, and it has been rising consistently over the past three days.

SOL Long/Short ratio

Source: Coinglass

A combination of rising open interest and a Long/Short ratio above 1 suggests a potential buying opportunity. Traders often use this to build long/short positions. 

As of press time, the major liquidation levels were near $125 on the lower side and $131 on the upper side, as traders appear over-leveraged at these levels, according to the CoinGlass data. 

 Solana major liquidation levels

Source: Coinglass

If the trader’s bullish sentiment fails and the SOL price drops to the $125.61 level, nearly $56 million worth of long positions will be liquidated.

Conversely, if sentiment remains bullish and the price reaches the $131 level, approximately $25 million worth of short positions will be liquidated.


Realistic or not, here’s SOL’s market cap in BTC’s terms


Looking at these data, it appears that bulls are currently dominating and have a high potential to liquidate short positions. 

At press time, SOL was trading near the $130.40 level and has experienced a price surge of over 2.5% in the last 24 hours. Meanwhile, its trading volume declined by 65% during the same period, indicating lower trader participation due to the recent price drop.

Share

Chanakya G is an analyst with 4 years of experience looking at the crypto-markets. His primary field of interest is the Altcoin market and its correlation with Bitcoin, and how that dynamic affects the larger sector.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.