Solana (SOL) Volatility May Increase: What Do Metrics Say?

On November 23, the Solana ($SOL ) price reached an all-time high of $260. This development led to speculation that the popular altcoin could rise to $300. When looking at futures, long-oriented transactions are increasing.

According to Coinglass data, Solana's Long/Short ratio in the 1-hour time frame has increased to 1.17. This ratio measures whether investors in the market are mostly bearish (short) or bullish (long). A ratio below 1 indicates more selling pressure, while a ratio above 1 indicates more buying expectations.

Currently, 54 percent of #Solana investors are long, while 46.17 percent predict that the price will fall below $255. This development is a signal that investors think the price will rise.

In addition, the increase in Solana's transaction rate could also make these positions profitable for investors. The increase in the transaction rate on the blockchain indicates an increase in user activity and interest in the token. According to Glassnode data, the transaction rate of the Solana network is increasing and if this trend continues, it could push the SOL price to new highs.

On the weekly charts, the Solana price is trading above the 20 and 50 Exponential Moving Averages (EMAs), which are trend-setting. A price above the EMAs indicates an uptrend, while a drop below them usually indicates downward momentum.

Currently trading at $255, #SOL continues its uptrend by staying above these averages. In addition, a bullish pennant formation is striking in the price action. This formation shows that the price tends to maintain upward momentum after overcoming the consolidation period.

If the price stays above the upper trendline of the consolidation phase, it has the potential to rise to $325. However, if selling pressure increases, the price could drop below $200.