Buy Solana (SOL) for 25% Rally, data hints on the chain
Solana (SOL), the fourth largest cryptocurrency, received special attention from the cryptocurrency community as it broke out of bullish price action patterns. Following the breakout, SOL is currently consolidating at the $204 support level, indicating that it may rally ahead of a major rally.
Solana technical analysis and future levels
According to expert technical analysis, SOL looks bullish as it breaks out of the nine-month parallel channel pattern. Experts suggest that this upheaval has shifted the sentiment from a region-bound market to a Bulgarian one.
However, the market has been consolidating in a tight range for the past three days, which suggests a possible rally and shows optimism for SOL holders.
Based on recent price action and historical price progress, if SOL breaks out of this minor consolidation, there is a strong possibility that it could rise by 25% to reach the $260 level in the coming days. Currently, the asset is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend.
Bullish On-Chain Indicators
SOL's positive view is further supported by chain metrics. According to chain analyst firm Coinbase, Solana's long/short ratio currently stands at 1.05, indicating strong market sentiment among traders. Meanwhile, open interest rose 11 percent in the last 24 hours and 4.7 percent in the last four hours.
This open demand suggests growing trader participation, and the price consolidation indicates a bullish trend.
A combination of these on-chain metrics with technical analysis suggests that bulls are still dominating the asset amid the price consolidation and that SOL may support it in the upcoming bull run.
Current price momentum
At press time, SOL is trading around $214.85 and has experienced a 1.10% price increase in the last 24 hours. During the same period, the trading volume rose by 2.6 percent, reflecting the increasing participation of traders and investors.
