Solana (SOL) surged over the weekend, mirroring Bitcoin’s (BTC) climb back above the $60,000 resistance level. Analysts remain optimistic about SOL, with one prominent analyst projecting a price target of $950. This bullish sentiment is further fueled by the upcoming launch of Firedancer, Solana’s new independent client, on the mainnet in Q4 2024.
Solana on the Verge of a Breakout?
While the daily chart doesn’t yet confirm a bullish trend, a daily close above the recent lower high at $155 would be a significant sign. This, followed by a higher low formation, would suggest a potential trend reversal.
Supporting this bullish case is the RSI (Relative Strength Index) currently hovering at 57, indicating sustained buying pressure. Additionally, the OBV (On-Balance Volume) has been climbing for the past three weeks, signifying that buying volume outweighs selling volume. These factors suggest the bulls have a good shot at surpassing the $155 resistance.
For a long-term uptrend to take hold, Solana needs to overcome the $170 and $187 supply zones.
Rising Open Interest and Bullish Sentiment
Open Interest for Solana has surged from $1.69 billion to $2.01 billion in recent days, indicating a rise in speculative long positions (bets that the price will go up) on SOL, especially with Bitcoin’s short-term outlook improving.
Analyzing the liquidation heatmap reveals key zones to watch: $155, $165, $177, and $185. These price points could trigger significant short liquidations, further propelling the price upwards. The $165-$168 zone holds the largest liquidity cluster, suggesting a potential move towards $170.
Also Read: Solana (SOL) Eyes $160 Breakout: Can USDC Boost and Analyst Optimism Fuel the Surge?
Eyes on Bitcoin for Further Gains
Whether SOL continues its climb beyond $170 depends on factors such as Bitcoin’s trajectory. If Bitcoin rallies to $73,000 before a potential correction, it could further bolster SOL’s bullish momentum. With the right conditions, SOL could reach as high as $185 due to the build-up of liquidity in the market for both Solana and Bitcoin.
While the future remains uncertain, the confluence of positive technical indicators, analyst predictions, and the upcoming Firedancer launch is creating a wave of optimism for Solana. The coming weeks will be crucial in determining if SOL can sustain this momentum and break through key resistance levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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