Solana (SOL), the sixth largest cryptocurrency by market cap, is showing signs of a significant rally potential on September 20, 2024. After a period of consolidation, SOL has broken out and is now aiming for the $165 level.
Currently trading near $144, SOL has experienced a price surge of over 10% in the past 24 hours. The increased trading volume, up by 31%, indicates growing interest from crypto enthusiasts following the breakout.
Technical analysis suggests that SOL is bullish and in an uptrend, trading above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a key indicator used by investors and traders to determine the direction of an asset’s trend.
For the breakout to be confirmed, SOL needs to close its daily candle above the $141.5 level. If this occurs, there is a strong possibility of a 15% increase towards the resistance level of $165 in the near future.
In addition to the price momentum, SOL’s on-chain metrics are also signaling bullish sentiment. Coinglass’s Long/Short ratio is currently at 1.02, indicating a bullish market sentiment. Moreover, the future open interest has risen by 13% in the last 24 hours and continues to climb.
The increasing open interest suggests that more traders are betting on long positions rather than short positions. Currently, 51% of the top traders hold long positions, while 49% hold short positions, indicating that bulls are dominating the market.
Traders and investors often use a combination of rising open interest and a long/short ratio above 1 to make informed decisions on building their positions.
Overall, SOL’s bullish breakout, technical analysis, and on-chain metrics point towards a potential rally in the coming days. With strong support levels and growing interest from traders, SOL is positioned for further growth in the cryptocurrency market.