Solana’s price is at a critical juncture.
Solana [SOL] is seeing increasing activity in the market, trading around $140.97 at press time. Technical analysis suggests that Solana could be reaching a turning point, driven by major indicator formations and growing interest in the derivatives market.
The price of SOL has fallen by 2.74% in the past 24 hours and 2.54% in 7 days, reflecting some bearish pressure in the market.
Despite the recent downside move, analysts are observing a symmetrical triangle formation that could signal an imminent breakout.
This pattern suggests that if Solana breaks above the resistance, its price target could be as high as $220, which would represent a potential gain of 53.28% from current levels.
Traders are watching this potential breakout for confirmation of a rally to the upside.
Technical indicators show mixed sentiment
At press time, SOL is trading around $140.76, below the middle Bollinger Band at $147.49. This indicates potential bearish pressure, and if volatility rises, the trading range could be between $167.75 and $127.23.
Traders can use this range to guide their short-term strategies when market conditions change.
Meanwhile, the Relative Strength Index (RSI) is currently at 42.69, below the neutral 50 level, suggesting that momentum remains biased towards the bearish side.
However, the RSI has not entered the oversold territory, which means there is room for further decline or potential reversal if buying interest picks up.
The Chaikin Currency Flow (CMF) also pointed to weak capital inflows with a reading of -0.04, slightly negative, further adding to traders’ cautious sentiment.
Solana Trading Surge Portends Volatility
Solana derivatives data reflected significant growth in trading volume and open interest. Trading volume surged 51.50% to $5.48 billion, while open interest increased 3.74% to $2.03 billion.
The increase in trading activity suggests that traders are increasingly positioning themselves in the market, perhaps anticipating large price moves. Open interest in the options market has also increased, indicating growing speculative bets on the future price direction of SOL.
The long-short ratio across major exchanges shows different sentiments. On Binance, the long-short ratio remains close to neutral at 0.9798, indicating a balanced stance among traders.
On OKX, the long-short ratio is bullish at 3.01, reflecting greater optimism about SOL’s future price potential.
However, liquidation data shows that $4.13 million was liquidated in the past 24 hours, with losses split almost evenly between long and short positions, highlighting the volatility of the current market. Solana’s recent price action and increased trading activity suggest that the asset is at a critical juncture.
