Solana’s price has reached $160 after a 13% increase this week, marking a positive turn following recent struggles. Discussion of a Solana ETF has revived demand, driven by high buying pressure. Technical indicators suggest potential further gains to $175, although concerns about $3 billion in liquidations loom if prices correct sharply.
The crypto market’s recent momentum, influenced by external events like the attempted assassination of Presidential Candidate Donald Trump, has also played a role in Solana’s upward movement.
Solana Shows Recovery, Surpasses $160 Amid High Trading Volume
In recent days, Solana has rebounded from a low of $123 to exceed $160, buoyed by a notable increase in trading volume indicating growing demand.
Crypto analyst Ali Crypto warns of potential liquidations totaling $2.98 billion if Solana reaches $176, primarily from short positions. Such sales could drive the price down again.
To sustain its upward momentum, Solana must surpass the $176 threshold. Analyst Captain Faibik predicts that achieving this could propel the token towards the $1000 mark, highlighting bullish sentiments in the market.
Solana Faces Bearish Sentiment Amid Price Surge and Market Dynamics
The recent bullish push has propelled Solana’s price to significant highs, but underlying weighted sentiments are declining, hinting at bearish market sentiment for the altcoin. Despite attempts to breach resistance levels, the price retraced after hitting $163, signaling a potential pullback.
Market Indicators and Sentiment Analysis: Coinglass reports a drop in the Long/Short Ratio, suggesting a possible correction phase for Solana before resuming its upward trend. User sentiments, characterized by excessive greed, further indicate a correction phase due to overbuying in the market.
Impact of Ethereum ETF Approval and Future Prospects: The anticipation surrounding the Ethereum ETF approval has bolstered Solana’s demand, with companies preparing for S-1 filings. If approved, the Solana ETF could elevate its price to surpass Ethereum in market race. Currently, strong buying pressure has pushed SOL’s price to $160, but continued momentum could lead to potential losses totaling $3 billion.
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