Solana (SOL), the world’s fifth-largest cryptocurrency by market capitalization, is on the verge of a significant price surge in the coming days, following a major breakout. After a challenging two-week period, SOL has successfully breached the strong resistance level of $138, marked by a robust bullish candle on the daily time frame.
Solana (SOL) Price Prediction For September 14
According to expert technical analysis, SOL remains bullish despite trading below the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a crucial technical indicator that helps determine whether an asset is in an uptrend or downtrend. Based on historical price momentum, if SOL closes a daily candle above the $138 level, there is a strong possibility that it could soar by 20% to reach the $163 level and potentially further to the $185 level if the bullish sentiment continues.
SOL’s Bullish On-chain Metrics
SOL’s bullish outlook is further reinforced by favorable on-chain metrics, including the long/short ratio, future open interest, and OI-weighted funding rate. Coinglass’s long/short ratio for SOL currently stands at 1.0454, indicating a positive market sentiment among traders. This on-chain metric is instrumental for traders and investors in gauging market sentiment. As of the latest data, 51.11% of top traders are holding long positions in SOL, while 48.89% are holding short positions.
Additionally, SOL’s future open interest has increased by 4.5% in the last 24 hours and has been consistently rising. This trend indicates that traders are increasingly betting on long positions rather than short positions. Rising open interest and a long/short ratio above 1 are often considered positive indicators when building long or short positions.
Moreover, SOL’s OI-weighted funding rate is currently at +0.0024%, further suggesting a bullish outlook for Solana.
Current Price Momentum
As of the latest update, SOL is trading near $139, experiencing a price surge of over 2.75% in the last 24 hours. Concurrently, its trading volume has increased by 2.5% during the same period. This rising trading volume indicates higher participation from traders and investors following the recent breakout of a crucial resistance level.
However, it is essential to note that this bullish thesis will only hold if SOL closes its daily candle above the resistance level. Failure to do so may invalidate the bullish outlook.
