Solana (SOL), the fifth-biggest cryptocurrency by market cap appears bullish and poised for a massive upside rally following its consolidation breakout. After consolidating in a tight range between $141 and $150 for the last five days, SOL has finally broken out of that zone and is now ready for the rally.
Solana (SOL) Current Price Momentum
At press time, SOL is trading near $153.2 and has experienced a price surge of over 7.2% in the past 24 hours. During the same period, its trading volume increased by 25%, indicating growing participation from traders and investors amid the recent breakout.
Solana Technical Analysis and Upcoming Levels
CoinPedia’s technical analysis suggests that SOL is bullish, as it is trading above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator that crypto experts use to determine whether an asset is in an uptrend or downtrend.
Based on the historical price momentum, if SOL closes its daily candle above the $151.5 level, there is a strong possibility it could soar by 13% to reach the $165 level or even higher if sentiment remains unchanged.
This bullish thesis will only hold if SOL closes its daily candle above the $151.5 level, otherwise, it may fail.
SOL’s Bullish On-chain Metrics
Currently, this positive outlook is further supported by on-chain metrics including SOL’s future open interest and Long/Short ratio. According to Coinglass, SOL’s long/short ratio currently stands at 1.021, indicating strong bullish sentiment among traders.
Additionally, its future open interest has jumped by 4.9% in the last 24 hours and has been steadily rising since September 10, 2024.
Traders and investors often use the combination of rising open interest and long/short ratio above 1, while building long positions. Currently, 50.5% of top traders hold long positions, while 49.5% hold short positions.