Solana (SOL), the world’s fourth-largest cryptocurrency by market cap, is on track to hit a new all-time high after showing a bullish price action pattern on the daily timeframe. While other cryptocurrencies struggled to gain momentum, SOL broke through a key barrier, surging more than 6.6%.
Solana Price Analysis
Currently, SOL is trading near $232, with trading volume up more than 56% in the past 24 hours. The significant increase in trading volume indicates increased participation from traders following the SOL price rally.
This significant price increase and bullish outlook are not only driven by its price action, but are also supported by positive on-chain indicators and current market sentiment.
Solana Technical Analysis and Upcoming Levels
According to expert technical analysis, SOL has broken out of a strong consolidation zone formed after the price broke through significant resistance at $200.
Based on historical price momentum, whenever an asset trades in a narrow range after a breakout, it is considered a bullish sign. Whales and investors usually accumulate funds during this period, leading to a parabolic move at the next breakout. However, this time, whales and investors expect similar price momentum to occur in the coming days.
With the breakout above the consolidation zone, there is a good chance that SOL could reach the $270 level or even move higher in the coming days if the sentiment remains the same.
Bullish on-chain data
In addition to this technical analysis, on-chain metrics further support the bullish outlook. According to on-chain analytics firm Coinglass, SOL’s open interest (OI) has surged 21% in the past 24 hours, indicating increased participation from traders driven by the asset’s bullish momentum.
Meanwhile, the long/short ratio of SOL on Binance is currently 1.50, indicating that traders are strongly bullish on the market. According to data, 60% of Binance’s top traders currently hold long positions, while 40% hold short positions.
The combination of these on-chain indicators and technical analysis suggests that bulls are currently dominating the asset and could support an upcoming rally in SOL.
