The fourth-largest cryptocurrency, Solana (SOL), has received a lot of attention from the cryptocurrency community for breaking out of a bullish price action pattern. After the breakout, SOL is currently consolidating around the $204 support level, suggesting that accumulation may occur before a major rally begins.
Solana Technical Analysis and Upcoming Levels
According to expert technical analysis, SOL has broken out of a nine-month-long parallel channel pattern, showing bullish momentum. Experts believe that this breakthrough has shifted the market sentiment from range-bound to bullish.
However, the market has been consolidating in a tight range for the past three days, which suggests potential accumulation and portends a bullish outlook for SOL holders.
Based on recent price action and historical price momentum, if SOL breaks out of this minor consolidation, there is a high chance that it could surge 25% to $260 in the coming days. Currently, the asset is trading above the 200 exponential moving average (EMA) on the daily timeframe, indicating an uptrend.
On-chain indicators are bullish
SOL’s positive outlook is further supported by on-chain metrics. According to on-chain analytics firm Coinglass, Solana’s long/short ratio currently stands at 1.05, indicating traders are strongly bullish on the market. Meanwhile, its open interest has surged 11% in the past 24 hours and 4.7% in the past 4 hours.
The increase in open interest indicates growing participation among traders, while the price consolidation also signals a bullish trend.
These on-chain indicators combined with technical analysis suggest that bulls remain in control of the asset during this period of price consolidation and could provide support for SOL in the upcoming bull run.
Current Price Momentum
At press time, SOL is trading near $214.85, with a 1.10% price increase over the past 24 hours. Its trading volume has grown by 2.6% over the same period, indicating increasing participation from traders and investors in a potential uptrend.
