Over the past week, Solana (SOL) is hitting over 8% in bullish momentum. Crypto analyst Rekt Capital has confirmed that at long last, SOL successfully broke out of the long standing descending trendline on the weekly chart.
This breakout signals potential gains, attracting renewed investor interest. SOL recorded a 2.2% rise in the last 24 hours, indicating potential momentum toward its $200 target. Besides, trading volume has increased significantly, highlighting growing optimism.
Solana Price Breakout and Key Resistance Levels
Bullish sentiment was rekindled as Solana broke out above a descending trendline. This trend line has historically been a noteworthy resistance barrier for SOL. Positive signal for upward movement is recent move beyond this resistance. As a result, the next resistance target is at $175.50 with $SOL being able to push into the $202.84.
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However, a potential pullback to $159.28 support may occur if momentum weakens. Lower support levels at $135.37 and $122.75 could also be tested if downward pressure resumes. A sustained position above the trendline is crucial to maintaining bullish sentiment.
Rising Derivatives Interest Signals Increased Trader Activity
SOL’s derivatives trading has leapt up by 16.14% to $9.34B in trading volume. But open interest went up 3.37% to $3.40 billion, signaling higher trader participation. The bullish bias is slightly highlighted by the 24 hour long/short ratio of 1.05.
Additionally, Binance’s top traders showed a more potent sentiment, with a 1.6687 ratio favoring longs. Liquidation data shows $5.21 million liquidated within 12 hours, with $2.94 million in long positions and $2.27 million in shorts.
The short positions’ liquidation signals heightened volatility, contributing to momentum shifts. As leading exchanges like Binance, OKX, Bybit, and Bitfinex drive trading activity, traders should brace for more volatility.
Market Sentiment: Mixed Signals Amid Growing Optimism
Solana’s market sentiment currently stands at 58% on the Fear & Greed Index, indicating a neutral outlook. This reflects traders’ caution despite bullish indicators. Positive trends are evident in volatility, trading volume, and impulse, all of which signal strong momentum and active trading.
However, sell pressure persists, as indicated by a negative order book, which could restrict upward potential.
Higher whale activity, positive social mood, and the search volume show good retail and institutional demand. However, traders are recommended to hold back and move after a clearer pattern has emerged because this is a consolidation pattern.
