Connect with us
Active Currencies 14915
Market Cap $2,526,019,279,808.10
Bitcoin Share 51.79%
24h Market Cap Change $-0.28

Will Solana reach $200 again? Assessing SOL’s next few weeks

2min Read

While SOL’s price can increase, analysis shows it may not reach the landmark before June closes.

Will Solana reach $200 again? Assessing SOL's next few weeks

Share this article

  • The Liquidation Levels suggested that SOL’s price might rise toward the $140-$146 region.
  • Solana’s Funding Rate stayed positive, indicating bullish sentiment among traders

Solana’s [SOL] price increased by 8.44% in the last 24 hours, making the cryptocurrency the best-performing top 10 asset in the last 24 hours. At press time, SOL’s price was $137.24.

As a result, the $200 price predictions have come back to life. The last time, SOL reached $200 was in April, indicating that the token has not reached such heights in almost two months.

However, there has been speculation of an altcoin season since Bitcoin [BTC] underperformed compared to other tokens in the top 10.

Altcoin season, also called “alt season,” occurs when non-BTC assets outperform the number one cryptocurrency.

For that to happen, at least 75% of the top 50 cryptos have to perform better than Bitcoin. However, this has not been the case. But if this happens in the coming weeks, the Solana native token could be looking at a higher value.

One indicator that can help predict the price is the Liquidation Levels. This indicator assist traders to identify where liquidation events might occur. It does this by looking at the cluster of prices with open long and short positions.

At press time, a cluster of liquidity existed from $140 up to $146. This means that the price of SOL might rise toward this region in the short term.

Solana liquidation levels

Source: Hyblock

But that would only be the case if buying pressure increases. Apart from the liquidations levels, examining the Cumulative Liquidation Levels Delta (CLLD) is important as well.

The CLLD calculates the sum of the difference between all long liquidations and short liquidations. A positive value indicates that there are more long liquidations.

However, when the value is negative, it means there are more short liquidations. At press time, Solana’s CLLD was positive. This was evidence of the retracing price especially as the value hit $139 earlier.

Furthermore, the CLLD also gives insights into the price direction. Interestingly, the highly positive CLLD was bearish signal for SOL. This is because the recent SOL retrace could go lower.

As such, SOL could erase a chunk of its gains in the next few days. If this is the case, the price could take a longer period before it hit $200.

In the meantime, Solana’s Funding Rate remained positive. Funding Rate measures the fees paid between longs and shorts. Positive values indicates that longs are paying shorts, and the broader sentiment is bullish.

Solana traders are bullish

Source: Santiment


Is your portfolio green? Check the Solana Profit Calculator


On the other hand, negative values indicate the shorts are paying longs. If this is the case, it means the trader sentiment is bearish.

However, one thing AMBCrypto noticed was that funding became lower as the price increased.  For this price, this is bullish as it seems spot buying had increased.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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.