- SOL is up 9.11% over the past month.
- Solana has turned 200 EMA on daily and 4-hour time frames, signaling a possible rebound.
Since hitting a local high of $193, Solana [SOL] has failed to maintain upward momentum and regain higher levels. As such, the altcoin remains stuck in a consolidation range between $140 and $160.
This shows that since falling below $160, the bears have outpaced the bulls to keep prices within this range.
In fact, at the time of writing, SOL was trading at $146. This marked a 9.11% on the monthly charts, with the altcoin also making moderate gains on the weekly and daily charts.
Despite the recent gains, the SOL remains 43.9% below the ATH of $259 recorded in 2021.
Although SOL has struggled to break above $160, the recent price action is creating optimism, prompting analysts to speak. One of them is Coin signals who have suggested a possible increase citing 200 EMA.
Solana flips 200 EMA
In their analysis, Coin Signals stated that SOL has reversed 200 EMA on daily and 4-hour time frames. This price movement means that the altcoin has broken out of the symmetrical triangle.
What this means is that a breakout above the upper trendline signals the start of an uptrend. Therefore, the altcoin is well positioned to see further gains on price charts.
What SOL’s graphs suggest
Solana’s Long/Short Ratio on a four-hour timeframe stood at 1.2 at the time of writing, indicating that long position holders were taking over the market. That’s why more and more traders are betting on a rise in prices, rather than a fall.
This demand for long positions was further supported last week by a positive DyDx Exchange Funding Rate. This suggests that longs pay a premium to shorts during market downturns to maintain their positions.
Such market behavior also indicates that investors have confidence in the altcoin’s future profits.
Finally, Solana’s open interest in USD per Exchange has increased over the past week. Open Interest has risen from a low of $649 million to $712 million.
This shows that investors were constantly opening new positions in anticipation of further gains.
Read Solana’s [SOL] Price forecast 2024–2025
Simply put, while SOL has struggled to regain levels above $140 and $160, the altcoin is showing increased positive market sentiment.
As such, current conditions could provide Solana with further gains. Therefore, a break above the USD 160 resistance will see the altcoin reach USD 170.