- The Liquidation Levels suggested that SOL’s price might rise toward the $140-$146 region.
Solana’s Funding Rate stayed positive, indicating bullish sentiment among traders
As an experienced analyst, I believe that Solana (SOL) is showing strong signs of potential price growth based on recent market indicators. The Liquidation Levels suggest that the price might continue to rise toward the $140-$146 region due to the cluster of liquidity in that area. This is a bullish sign for SOL holders and traders looking to enter positions.
The last 24 hours saw a significant price surge of around 8.44% for Solana [SOL], making it the highest gainer in the top 10 cryptocurrencies as of now, with its price being $137.24.)
I’ve noticed an intriguing development as a researcher: the previous $200 price projection for Solana (SOL) has regained some momentum. It’s been quite some time since SOL last touched the $200 mark, back in April to be precise. This suggests that the token hasn’t attained these heights in nearly two months.
There have been rumors that we’re in an altcoin boom due to Bitcoin [BTC] performing poorly relative to other top cryptocurrencies.
As a researcher studying the cryptocurrency market, I’ve come across the term “altcoin season” or “alt season.” This refers to a specific market condition where non-Bitcoin digital assets experience significant price growth and outperform Bitcoin itself.
If at least three-quarters of the leading 50 cryptocurrencies outperform Bitcoin, then that situation may occur. Yet, this condition has not been met up to now. Nevertheless, should this trend emerge in the near future, Solana’s native token could potentially witness a rise in value.
One method for forecasting prices involves examining Liquidation Levels as an indicator. This tool assists traders in identifying potential price points for liquidation events. By analyzing the concentration of open long and short positions, it provides insight into where market forces might forcibly close positions due to unfavorable price movements.
As a researcher studying the Solana market at present, I’ve observed a grouping or accumulation of liquidity between $140 and $146. Consequently, there is a potential for the Solana price to move upwards towards that range in the near future.
If purchasing demand rises, then that would be the situation. However, it’s essential to look at Cumulative Liquidation Levels Delta (CLLD) in addition to stop-loss orders or liquidation levels.
As a researcher studying market data, I would describe the Collective Liquidation Differential (CLLD) calculation as follows: The CLLD represents the total of the disparities between all long and short liquidation events in the market. A positive value signifies that there are more instances of long liquidations occurring than short ones.
As a crypto investor, I’ve observed that a positive CLLD (Cost-Lagged Liquidation Difference) for a cryptocurrency like Solana indicates that there are more open long positions than short ones in the market. Conversely, a negative CLLD suggests an excess of short positions, leading to more short liquidations. At the moment, Solana’s CLLD is positive, which could be a sign of price retracement, as we saw the value reach $139 earlier.
Additionally, the CLLD provides valuable information regarding price trends. It’s worth noting that a strongly bullish CLLD indicator implied a bearish outlook for SOL, suggesting that the recent correction in SOL’s price may extend downward.
Should SOL experience setbacks in the near future, it may have to give back some of its recent advancements. In that scenario, reaching the $200 mark could take more time.
As a crypto investor, I’ve noticed that Solana’s funding rate continued to be favorable during this period. The funding rate represents the fees exchanged between long and short positions. A positive value signifies that longs are compensating shorts, implying a broader optimistic outlook for the asset.
Is your portfolio green? Check the Solana Profit Calculator
In contrast, when short positions show up with negative values, it signifies that traders are taking on long positions in large numbers. This situation implies a pessimistic outlook among traders.
As a crypto investor, I’ve observed an interesting trend with AMBCrypto’s data – the funding level has decreased as the price has risen. This might not seem like good news at first, but upon closer examination, it could be a bullish sign. The reason being, this decrease in funding suggests an increase in spot buying, where investors are purchasing cryptocurrency outright instead of using leverage. This can lead to a stronger and more sustainable price trend in the long run.
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2024-06-26 15:05