On September 20, 2024, Solana (SOL), the sixth largest cryptocurrency by market cap, is showing significant rally potential. This promising outlook is driven by its recent bullish breakout and favorable on-chain metrics. After nearly three weeks of struggle, SOL has successfully broken through its consolidation zone and is now making strides toward the $165 level.
Solana Price Momentum
As of the latest data, SOL is trading around $144, having experienced a price surge of over 10% in the past 24 hours. During this period, its trading volume surged by 31%, indicating increased participation from crypto enthusiasts and traders in light of the recent breakout.
Solana Technical Analysis and Upcoming Levels
Expert technical analysis reveals that SOL is in a bullish phase and an uptrend, as it is currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe. The 200 EMA is a crucial technical indicator used by investors and traders to determine the directional trend of an asset. Trading above this level suggests a positive outlook.
For this breakout to be considered successful, SOL needs to close its daily candle above the $141.5 level. Should this happen, there is a strong possibility for SOL to soar by 15%, reaching its resistance level of $165 in the coming days.
SOL’s Bullish On-chain Metrics
In addition to the technical breakout, SOL’s on-chain metrics are also signaling a bullish trend. Key metrics such as the long/short ratio, future open interest, and OI-weighted fund rate are all flashing positive signals.
According to Coinglass, the Long/Short ratio for SOL currently stands at 1.02, a value indicating bullish market sentiment as it is above 1. Moreover, the future open interest has risen by 13% in the last 24 hours and continues to climb steadily.
This increasing open interest indicates that bulls are placing more bets on long positions compared to short ones. Currently, 51% of top traders hold long positions, while 49% hold short positions. This data suggests that bullish traders are back in the market and are currently dominating the asset.
Typically, traders and investors use the combination of a rising open interest and a Long/Short ratio above 1 to build up their long or short positions. These metrics together provide a strong foundation for anticipating future price movements and making informed trading decisions.
