Solana is poised for a possible ‘big’ move after holding the $120 support.
Crypto traders have highlighted the emergence of a strong support line on Solana's price chart, leading some to believe it is a launching pad for a “major” upward move in the near term.
“$SOL appears to be holding support at $120,” veteran trader Peter Brandt wrote in a September 20 post. Brandt was referring to Solana's price action on the daily chart, which shows SOL's consolidation in a rectangle with the lower limit rectangle at $120 acting as support since mid-April.
“This could be a quadrangle that can start a big development.”
BTC/USD Daily Chart. Source: Peter Brandt
Trading partner Trader Koz has similar observations, the price of SOL has successfully retested $120 3 times in the near future, strengthening the importance of this level for buyers.
According to TraderKoz, those looking to go long on SOL should expect a retest of the zone between $135 and $140.
Source: TraderKoz
Among the ten main kriptovalyutnyhs by market capitalization, Solana (SOL) showed the highest growth in the last seven days (8.82%), ahead of Bitcoin (BTC) Rally by 6.45%, according to data from CoinMarketCap.
At the time of publication, Solana is trading at $148.50 and appears poised to extend its “bullish momentum” to hit its short-term target at $160, according to crypto trader CryptoZhi.
Related: Solana unveils new tracking device, says it's not just a ‘memecoin phone'
Futures traders were also widening their positions amid the bullish pattern.
Open interest (OI) – a measure of the total value of all outstanding or “unsettled” futures contracts – rose 12.5% to $2.34 billion in the past three days, according to Coinglass data.
Solana OI has been lifted in the last three days. Source: Coinglass
Additional data from Defilama showed that Solana has seen a decline in total value locked (TVL) since late August, although there was a slight increase in the last three days from $4.66 billion on September 18 to $5.15 billion on September 20.
Similarly, data provided by Dune Analytics Dashboard Pump shows that daily transactions on the Solana blockchain increased from 4,630 to 8,023 between August 14 and September 19.
Chart of performance of Solana's engaged transactions. Source: Pump.Fun
The increase in TVL and onchain transactions on Solana shows network activity and adoption. Higher user interaction with the platform increases demand for SOL and is believed to have a positive impact on its price.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
