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The crypto market saw a notable rise yesterday, with Solana (SOL) breaking the crucial four-hour resistance at $130. This outbreak has caught the attention of investors, who are now anticipating a potential price increase in the coming months as market sentiment remains optimistic.
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Many analysts are predicting 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.
Adding to the market enthusiasm, Coinglass’ on-chain metrics reveal a positive outlook for Solana. These numbers reinforce the bullish momentum, pointing to 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 stats suggest strength
Solana is currently testing the local supply and looking to break a crucial daily resistance level at $137l as on-chain metrics from Coinglass reveal strong bullish sentiment among traders and investors.
A key metric that highlights this bullish sentiment is Solana’s open interest (OI) weighted funding ratewhich currently stands at +0.0068%.
When the funding rate is positive, traders with long positions pay financing costs to those with short positions, which typically signals expectations for rising prices. This indicates that bullish momentum is building, with traders anticipating a short-term rally in Solana price.
The growing interest from long positions further supports the statement that Solana may be preparing for a price increase. Bulls dominate the stock, and the data suggests there is a good chance that SOL could break out of its current trading range if market conditions remain favorable.
However, for this bullish outlook to hold, Solana needs to break the current $138 resistance level and close a daily candle above this key point. If the price breaks and remains above $138, it could signal a possible move towards higher price targets in the coming weeks.
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As the market develops, traders will keep a close eye on Solana’s price action and market structure to gauge whether a significant rally is imminent. Meanwhile, Solana remains promising, 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 is at $141.14. This level is a major sign of strength for SOL, and regaining it would signal that the bulls are gaining strength.
If SOL successfully breaks the USD 135 resistance level and reclaims the 4-hour 200 EMA, it could trigger a significant upside move towards the USD 160 supply zone. This would mean a big recovery for the asset, potentially attracting more buyers and driving the price up.
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However, if Solana fails to break the USD 135 resistance, a return to lower demand levels is likely. $126 is the next potential support level for the buyer to intervene and prevent a price drop.
As SOL continues to test these key levels, traders are keeping a close eye on whether the bulls can maintain control or if a correction is on the horizon.
Featured image of Dall-E, chart from TradingView
