Traders have pointed out a bullish pattern emerging on Solana’s price chart, leading some to anticipate a price rally after the asset surged 17% over the past seven days.
“SOL HUGE PENNANT on the 1D chart,” trading resource CryptoBusy wrote in a July 18 post, which is a pattern that develops when the price consolidates inside a triangle-shaped pattern following a strong downward move.
“Watch out for this price action,” they stated. Meanwhile, crypto trading account InvestAnswers believes that “Solana is still showing impressive strength” against the rest of the cryptocurrency market.
Among the top ten cryptocurrencies by market capitalization, Solana (SOL) has seen the second highest growth over the past seven days (17.01%), behind XRP (XRP) with 23.57% growth, according to CoinMarketCap data.
At the time of publication, Solana is trading at $160.94, surpassing its “short term target,” according to crypto trader Honey.
Honey warned against overleveraging on the asset while it is still in an uncertain region.
“This is a pivot area and I’d be cautious with longs if you’re entering here,” she wrote while reiterating to her 105,600 X followers to “go easy on the leverage.”
Futures traders have also been expanding their positions amid the bullish pattern.
Open Interest (OI) — a measure of the total value of all outstanding or “unsettled” Bitcoin futures contracts across exchanges — has risen 22.14% to $2.13 billion over the past ten days, according to CoinGlass data.
Related: Solana slumps to 45-day low — Will SOL price bounce at $130?
Honey notes that while the asset could potentially rise to $192, there is also a risk of it falling to $140 if it fails to hold its current level.
A move down to this level would erase approximately $161 million in long positions.
Meanwhile, some traders, including Crypto Tony, believe the round $160 level isn’t the critical support needed for entry, thinking it still requires another 1.3% spike.
“Upticking nicely here, reclaiming $163 into support is the next goal,” pseudonymous crypto trader Crypto Tony stated.
“Above $163 is another level to reclaim for an easy, safer entry,” they added.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
