The cryptocurrency market is experiencing a downturn, with selling pressure dominating the sentiment. However, amidst this bearish trend, Solana (SOL) has emerged as a standout performer. As the world’s fifth-largest cryptocurrency by market cap, SOL has been resilient in the face of recent price fluctuations.
In the past 24 hours, SOL has outperformed major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). Currently trading near $172, SOL has seen a price surge of over 3.4%. Despite a 20% decline in trading volume, which may be attributed to market uncertainty, SOL continues to hold its ground.
Technical analysis experts have identified bullish signals for SOL. Breaking out from a consolidation phase between $162 and $170, SOL is poised to reach the $190 level, marking a potential 10% increase in the coming days. The cryptocurrency is currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe, signaling an uptrend.
Recent data shows that short sellers have liquidated approximately $3.5 million worth of positions, while bulls have registered a liquidation of $350,000. This suggests that bearish sentiment is waning, paving the way for further price appreciation.
On-chain metrics further bolster SOL’s bullish outlook. CoinGlass, an on-chain analytics firm, reports that SOL’s Long/Short ratio stands at 1.02, indicating strong bullish sentiment among traders. Additionally, open interest has surged by 11%, suggesting an influx of new positions following the breakout from consolidation.
Traders and investors typically look for rising open interest and a long/short ratio above 1 when considering long positions. With a combination of positive on-chain metrics and technical analysis, it is evident that bulls are currently in control of SOL’s price action, setting the stage for a potential upward trajectory in the near future.