Solana Major Breakout, Eyes on 20% Price Rally
Solana (SOL), the world's fifth largest cryptocurrency by market cap, is poised for a significant price increase in the coming days. After struggling near the strong resistance level of $138 for almost two weeks, SOL broke this level today with a strong bullish candle on the daily time frame.
Solana (SOL) price forecast for September 14
According to expert technical analysis, SOL looks bearish despite trading below the 200 Exponential Moving Average (EMA) on the daily time frame. In trading or investing, the 200 EMA is a technical indicator that indicates whether an asset is trending higher or lower.
Based on the historical price progress, if SOL closes a daily candle above the $138 level, there is a strong possibility that it may rise by 20% to the $163 level and $185 if the bullish sentiment continues.
SOL's Bullish On-Chain Metrics
SOL's bullish outlook is further supported by chain metrics such as the long/short ratio, futures open interest and OI-weighted funding.
SOL's long/short ratio for Coinglass currently stands at 1.0454, indicating traders' bullish market sentiment. This on-chain metric helps traders and investors identify market sentiment. At press time, 51.11% of top traders hold long positions in SOL, while 48.89% hold short positions.
Meanwhile, SOL futures open interest increased by 4.5% in the last 24 hours and is steadily growing. This indicates that traders are betting more on long positions than on short positions. Traders and investors consider keeping open interest and long/short ratios greater than 1 when building long or short positions.
Additionally, SOL's OI-weighted funding ratio currently stands at +0.0024%, indicating a bullish outlook for Solana.
Current price momentum
At the time of press, SOL is trading around $139 and has experienced a price increase of over 2.75% in the last 24 hours. Meanwhile, the trading volume is 2.5% in the same period. This trading volume is rising following a critical resistance level indicating high participation from traders and investors.
This bullish thesis only holds if the SOL closes the daily candlestick above its resistance level, otherwise it may fail.
