After a breakout above $138, it seems that crypto whales are showing a strong interest in Solana (SOL) and are actively buying up the cryptocurrency. On September 14, 2024, Lookonchain, an on-chain analytics firm, reported on X (formerly known as Twitter) that a crypto whale had purchased a substantial 10,000 SOL, amounting to $1.37 million from Binance and staked it.
The post on X also mentioned that this whale had acquired and staked a whopping 50,000 SOL, valued at $6.85 million. Additionally, they received a reward of over 174 SOL, which is equivalent to $23,700.
Despite this significant purchase, SOL may be looking to retest its breakout level to confirm its successful breakout. As of now, SOL is trading near $137, experiencing a price surge of over 3.75% in the last 24 hours. The trading volume has also seen a 20% increase, indicating heightened participation from traders and investors following the breakout.
In terms of technical analysis, SOL is currently facing strong resistance from the 200 Exponential Moving Average (EMA) on the daily timeframe. It is crucial for SOL to close a daily candle above the 200 EMA to trigger a significant upside rally.
If SOL manages to close its daily candle above $140, there is a strong possibility that it could rise by 18% to reach the $165 level and potentially even soar further to $185 if bullish sentiment persists. However, this bullish scenario will only materialize if SOL closes the daily candle above the $140 mark.
The major liquidation levels for SOL are currently near $135 on the lower end and $140.81 on the upper end. Traders are over-leveraged at these levels, as per data from Coinglass. If the price rises to $140.81, approximately $65 million worth of short positions will be liquidated. Conversely, if the price drops to $135, around $38.5 million worth of long positions will be liquidated.
The Long/Short ratio for SOL currently stands at 1.0695, indicating a bullish market sentiment among traders. This ratio helps traders determine whether to take long or short positions based on market sentiment. A ratio above 1 suggests bullish sentiment, while a ratio below 1 indicates bearish sentiment. Currently, 52.68% of the top traders hold long positions on Solana, while 48.32% hold short positions.