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Solana's peak was last year, so this year's price movement is relatively slow. Last month, SOL broke through the 160 mark, but fell again with the arrival of the National Day. The focus of SOL this month is also to re-advance to the important resistance level of $160.70.

Solana is trading close to the upper Bollinger Band, suggesting the potential for further gains. Moreover, the relative strength index (RSI) is at 55.04, suggesting that the market remains healthy and not overbought.

Therefore, if Solana is able to break through the resistance level of $160.70 recently, it may open the door for further gains. However, failure to break through this level may lead to consolidation or even a pullback. The first support level below is currently around 136.5. Penny has always emphasized that 120 is the hard bottom of SOL. As long as the market does not have a waterfall, it will be difficult to return to this position.

SOL Volume Surges: Is This a Sign of Strong Momentum?

The recent 127.64% surge in trading volume is a key development for Solana. Increased trading volume typically indicates strong market interest, which can drive prices higher. Therefore, the surge in trading volume could help SOL overcome resistance.

However, we should be cautious as high volume alone does not always guarantee that prices will continue to move without breaking key levels.

Long/Short Ratio: What Are Traders Thinking?

Solana’s long/short ratio currently stands at 50.33% longs and 49.67% shorts, suggesting that traders are almost evenly split. However, the slight tilt toward long positions shows slightly bullish sentiment.

This ratio could change dramatically as Solana approaches resistance, especially if the price breaks higher, which could attract more buyers to the market.

Liquidations: Will shorts get squeezed?

Liquidation data shows that short positions were liquidated $4.94 million, while long positions were liquidated $1.26 million. This imbalance could further fuel upward momentum if short positions continue to get squeezed.

Therefore, if the price of Solana continues to climb, it could force more shorts out of the market, increasing buying pressure.

In summary, while Solana is showing strong bullish signs, it must decisively break through the $160.70 resistance level to trigger a larger rally. The recent upward momentum is not as strong as SUI. We need to keep a close eye on its trading volume and liquidation data to judge the possibility of a breakout.

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