Solana’s price has recently been set to the $165 level, here’s why
Solana (SOL), the fifth largest cryptocurrency by market cap, looks bullish and is poised for a major upside rally following the collapse of consolidation. After consolidating in the tight $141 to $150 range for the past five days, SOL has finally broken out of that zone and is now ready for a rally.
Solana (SOL) current price momentum
At press time, SOL is trading near $153.2 and has experienced a price increase of over 7.2% in the last 24 hours. During the same period, the transaction volume increased by 25 percent.
Solana technical analysis and future levels
CoinPedia's technical analysis suggests that SOL is bullish as it trades above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator that crypto experts use to determine whether an asset is trending up or down.
Based on historical price action, if SOL closes the daily candle above $151.5, there is a possibility of a 13% rally to reach the $165 level or higher if sentiment remains unchanged.
This bullish thesis will only hold if the SOL closes the daily candle above the $151.5 level, otherwise it may fail.
SOL's Bullish On-Chain Metrics
Currently, this positive outlook is further supported by chain metrics including SOL futures open interest and the long/short ratio. According to Coinglass, SOL's long/short ratio currently stands at 1.021, indicating strong bullish sentiment among traders.
In addition, the futures open demand rose by 4.9% in the last 24 hours and has been steadily growing since September 10, 2024.
Often, traders and investors increase open interest and the long/short ratio by more than 1 when building long positions. Currently, 50.5% of top traders hold long positions while 49.5% hold short positions.
