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Solana (SOL), the world’s fifth-largest cryptocurrency, is experiencing a surge in bullish sentiment following a recent breakout. Technical analysis suggests that SOL has broken out of a bullish inverted Head-and-Shoulder pattern, a formation often associated with significant price increases.
Technical Analysis and Price Targets
SOL’s breakout from the Head-and-Shoulder pattern indicates a strong potential for a rally. If SOL can close a daily candle above the $161 level, it could soar by 18%, reaching the next resistance level of $190 in the coming days. Given the current market sentiment, there’s a good chance SOL could achieve this target before November 2024.
On-Chain Metrics Support Bullish Outlook
On-chain metrics further reinforce the bullish outlook for SOL. Coinglass data shows that traders are heavily leveraged at the current price levels, with short sellers placing significant bets on SOL falling below $156.6. However, long positions are also substantial, suggesting a strong belief in SOL’s upward momentum.
Also Read: Solana’s SOL Jumps 12% As Memecoins Surge 379%—Will $180 Be Next?
The rising open interest for SOL is another positive indicator. This increase suggests growing interest from traders, potentially fueling further price appreciation. Additionally, SOL’s long/short ratio stands at 1.11, indicating a predominance of bullish sentiment among traders.
Market Sentiment and Upcoming Events
The combination of technical analysis and on-chain metrics suggests that bulls are currently dominating the SOL market. This could support SOL’s price and help it reach the $190 level. The upcoming US presidential election could also contribute to a bullish market sentiment, providing additional tailwind for SOL’s price.
Solana’s recent breakout and positive on-chain metrics suggest a strong bullish outlook for the asset. If SOL can maintain its momentum and break above the $161 level, it could be poised for a significant price increase. However, it’s essential to remember that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Investors should conduct thorough research and consider their risk tolerance before making any investment decisions.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
