As the fourth largest cryptocurrency by market capitalization, Solana (SOL) is gearing up for the arrival of a bull market, buoyed by positive changes in on-chain indicators, with its upward momentum expected to continue.
Bullish On-Chain Indicators: Leading Signals for SOL's Rise
On-chain indicators, trading volume, and traders' growing interest in the SOL altcoin together weave a picture of strong short-term upward momentum. Data from the on-chain analysis company DefiLlama shows that SOL's daily trading volume surged from $2.91 billion on December 7, 2024, to $6 billion on December 11, reaching a peak not seen since November. This undoubtedly demonstrates that traders' interest and liquidity in the SOL chain are significantly heating up.
Meanwhile, Coinglass's SOL long/short ratio has also climbed to its highest level since early November 2024, with the current ratio of 1.05 vividly reflecting traders' strong bullish sentiment. Overall, these on-chain indicators suggest that bullish forces have clearly returned and are expected to dominate SOL assets in the upcoming rebound, providing solid support.
SOL Technical Analysis: Breaking Resistance Towards New Highs
Expert technical analysis indicates that SOL has successfully retested the key support level of $205, showing encouraging bullish momentum. Based on the recent price movements and historical momentum, if SOL can break through the resistance level of $240, its upward trend is likely to continue.
Once SOL crosses this critical level and closes above $241 on a daily basis, its price is highly likely to experience a significant leap of 10% in the coming days, reaching as high as $269. As of the time of writing, SOL's trading price is close to $227, with a price increase of over 7% in the past 24 hours; however, trading volume has decreased by 34% during the same period, indicating a slight decline in the enthusiasm of traders and investors compared to previous days.
