The crypto market experienced a notable surge yesterday, with Solana (SOL) breaking past the crucial 4-hour resistance at $130. This breakout has caught the attention of investors, who now anticipate a potential price surge in the coming months as market sentiment remains optimistic.
Many analysts are forecasting further gains, pointing to Solana’s recent performance as a key indicator of its strength. Investors are particularly focused on SOL’s ability to maintain its momentum, with growing demand and increased interest fueling bullish predictions for the altcoin.
In addition to market enthusiasm, Coinglass’s on-chain metrics reveal a positive outlook for Solana. These metrics reinforce the bullish momentum, suggesting a potential Solana rally.
As more investors look to capitalize on these trends, Solana’s performance could soon play a crucial role in determining the overall market direction for altcoins.
Solana On-Chain Metrics Suggest Strength
Solana is currently testing local supply and attempting to break past a crucial daily resistance level at $137l, as on-chain metrics from Coinglass reveal a strong bullish sentiment among traders and investors.
One key metric highlighting this bullish sentiment is Solana’s Open Interest (OI)-Weighted Funding Rate, which currently stands at +0.0068%.
When the funding rate is positive, traders holding long positions pay funding fees to those with short positions, which typically indicates expectations for rising prices. This suggests bullish momentum is building, with traders anticipating a short-term rally in Solana’s price.
The growing interest from long positions further supports the thesis that Solana may be gearing up for a price surge. Bulls dominate the asset, and the data indicates a strong possibility that SOL could break out of its current trading range if the market conditions remain favorable.
However, for this bullish outlook to hold, Solana must break through its current resistance level at $138 and close a daily candle above this key point. If the price breaks and holds above $138, it could signal a potential move toward higher price targets in the coming weeks.
As the market evolves, traders will closely watch Solana’s price action and market structure to gauge whether a significant rally is imminent. In the meantime, Solana continues to show promise, with bullish indicators supporting a positive short-term outlook for the asset.
SOL Price Action
Solana (SOL) is currently trading at $135, just 4.5% away from a crucial technical indicator: the 4-hour 200 exponential moving average (EMA), which sits at $141.14. This level is a key marker of strength for SOL, and reclaiming it would signal that the bulls are gaining momentum.
If SOL successfully breaks through the $135 resistance level and reclaims the 4-hour 200 EMA, it could trigger a significant upward move toward the $160 supply zone. This would mark a major recovery for the asset, potentially attracting more buyers and pushing the price higher.
However, if Solana fails to break past the $135 resistance, a retracement to lower demand levels is likely. $126 is the buyers’ next potential support level to step in and prevent a price drop.
As SOL continues to test these key levels, traders are watching closely to see whether the bulls can maintain control or if a correction is on the horizon.
Featured image from Dall-E, chart from TradingView