How Solana’s on-chain data supports a move towards $185

With the recent correction, SOL has retested the breakout level of the double-bottom pattern and was heading towards $165.
While combining on-chain metrics with technical analysis, it appears that bulls are dominating the SOL.

As an analyst with over a decade of experience in the volatile world of cryptocurrencies, I find myself drawn to the promising trajectory of Solana (SOL). After a necessary correction, SOL has reaffirmed its bullish stance by successfully retesting the breakout level of its double-bottom pattern and is poised for a potential upward surge towards $165.

Following a period of adjustment in prices, the broader cryptocurrency sector is showing signs of growth once more. Notably, Solana (SOL), currently ranked fifth among all cryptocurrencies, seems optimistic and ready to experience a significant surge upward.

Solana technical analysis and key levels

Based on the technical assessment by AMBCrypto, Solana (SOL) has managed to revisit the breakout point of its bullish double-bottom pattern and is currently trending towards approximately $165.

As an analyst, I’m observing that Solana (SOL) seems to be nearing completion of a daily bullish inverted head-and-shoulder chart formation. This pattern will be fully realized when Solana hits the $165 price point.

Currently, it’s highly likely that the price of SOL might surge towards the $165 mark. Additionally, a bullish trend indicates a significant price increase once SOL breaks the neckline of its inverted head and shoulder pattern, which is situated around the $165 level.

Should this speculation prove accurate, Solana (SOL) might climb up to around $185 within the near future. However, it’s essential to note that investor optimism continues to be high.

Bullish on-chain metrics

The optimistic view of SOL is reinforced by an analysis firm that focuses on blockchain data. As per Coinglass, the Long/Short ratio for SOL on a four-hour scale is 1.089 at present, suggesting a robustly bullish attitude among traders due to their trading activities.

Furthermore, over the last four hours, its open interest has increased by 2.9%. This continuous climb in open interest indicates that traders are actively placing orders, as Solana (SOL) demonstrates a successful retest of the recent breakout level, hinting at growing interest and activity.

In the world of cryptocurrencies, it’s common for traders and investors to interpret increasing open interest and a long/short ratio greater than 1 as positive indicators. They then utilize this information to construct favorable long positions.

Major liquidation levels

Currently, the significant buy and sell points are set at approximately $149.5 (on the lower end) and $154.6 (on the higher end), based on Coinglass data. Traders are seen to be heavily leveraged at these price levels.

If the attitude stays consistent and the price hits around $154.60, approximately $15,670,000 in short positions will need to be closed out.

If SOL’s price drops to around $149.5, it would trigger roughly $33.28 million in long positions being closed out or “liquidated.” In simpler terms, a significant number of investors who had previously bought SOL with the expectation that its price would rise, will see their positions terminated if the price falls to this level.

By blending these blockchain statistics with traditional chart analysis, it seems clear that at present, buyers hold a strong position over Solana (SOL), potentially sustaining its ongoing price surge.

Currently, Solana (SOL) is close to $153.8 in value, and it has seen an increase of more than 1.1% over the last day. However, the number of trades involving SOL decreased by approximately 12% within this same time frame, suggesting less activity from traders.

However, the volume is steadily increasing following the successful retest.

2024-10-18 18:15

Solana technical analysis and key levels

Bullish on-chain metrics

Major liquidation levels

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